Wall Street Falters; Tech Stocks Under Pressure Ahead of Fed Decision
US stock markets traded lower on Wednesday (July 29) ahead of the Federal Reserve's interest rate decision and earnings reports from major technology companies. The S&P 500 edged down, while the Dow Jones dropped more than 400 points.
Market pressure stemmed primarily from technology stocks and chipmakers. Investors remain concerned that massive spending on artificial intelligence infrastructure has yet to yield commensurate profits.
Shares of Microsoft and Meta fell more than 0.5% ahead of their post-market earnings reports. The results from both companies will serve as key indicators regarding the sustainability of AI investments and the outlook for the technology sector.
Shares of memory chipmakers remained relatively stable despite SK Hynix reporting disappointing performance results. Meanwhile, Visa shares fell about 1% even though the company recorded revenue growth in the previous quarter.
The market expects the Fed to hold interest rates steady. However, the possibility that some FOMC members might favor a rate hike suggests significant divergence of opinion within the central bank.
Rising oil prices, driven by renewed tensions involving the US and Iran, have also heightened inflation risks. As long as pressure on tech stocks, energy prices, and uncertainty regarding the Fed persist, Wall Street is likely to remain volatile.
Source: Newsmaker.id
