Latest news with #MichaelMatousek
The Sun
2 days ago
- Business
- The Sun
Wall Street stocks dip as chip sector reacts to China revenue-sharing deal
WALL STREET'S main indexes were down on Monday as investors await inflation data this week and chip companies seesawed after agreeing to share a portion of revenue from China sales with the U.S. under a trade policy shift from the Trump administration. Nvidia was flat after reversing premarket losses, and Advanced Micro Devices was up 0.5% in volatile trading. A U.S. official told Reuters the semiconductor majors had agreed to give the United States government 15% of revenue from sales of their advanced chips to China. Analysts said the levy could hit the chipmakers' margins and set a precedent for Washington to tax critical U.S. exports, potentially extending beyond semiconductors. 'A lot of people are not sure what to make of that because this is the first time in history that it's ever happened where an administration wants a percentage of the profits from a publicly traded company,' said Michael Matousek, head trader at U.S. Global Investors. Enabling semiconductor sales to China was an integral issue in the agreement Washington and Beijing signed this year, which expires on Tuesday. U.S. President Donald Trump lauded China's cooperation in talks at a White House press conference on Monday. At 2:01 p.m. ET (1801 GMT), the Dow Jones Industrial Average fell 176.88 points, or 0.40%, to 43,998.91, the S&P 500 lost 5.60 points, or 0.09%, to 6,383.93, and the Nasdaq Composite lost 12.87 points, or 0.06%, to 21,437.15. Traders took a step back after the S&P 500 and the Nasdaq last week logged their strongest weekly performances in more than a month. On Monday, the tech-heavy Nasdaq was on track for its third consecutive record closing high, if gains hold. Investors expect the recent shakeup at the U.S. Federal Reserve and signs of labor market weakness could nudge the central bank into adopting a dovish monetary policy stance later this year, fueling much of the optimism. July's consumer inflation report is due on Tuesday, and investors anticipate that the Fed will lower borrowing costs by about 60 basis points by December, according to data compiled by LSEG. 'Markets are on rate watch, so anything inflation-related will move markets this week,' said Jamie Cox, managing partner at Harris Financial Group. 'It's all about three rate cuts versus two at this point.' Citigroup and UBS Global Research became the latest brokerages to raise their year-end targets for the benchmark S&P 500. Micron Technology raised its forecast for fourth-quarter revenue and adjusted profit, boosting its shares 3%. Intel was up 3.5% after a report said CEO Lip-Bu Tan was expected to visit the White House. Trump had called for his removal last week. TKO jumped 8.5% after Paramount bought the rights from the live entertainment company to exclusively distribute UFC events for the next seven years in a deal valued at around $7.7 billion. Trump is expected to meet Russia's President Vladimir Putin on Friday to try and negotiate an end to Russia's war on Ukraine. Declining issues outnumbered advancers by a 1.11-to-1 ratio on the New York Stock Exchange. There were 203 new highs and 89 new lows on the NYSE. On the Nasdaq, declining issues outnumbered advancers by a 1.12-to-1 ratio. The S&P 500 posted 14 new 52-week highs and 15 new lows, while the Nasdaq Composite recorded 65 new highs and 98 new lows. - Reuters
Business Recorder
2 days ago
- Business
- Business Recorder
Wall St mixed, chip majors wobble after China sales deal
NEW YORK: Wall Street's main indexes were choppy on Monday as investors prepared for a busy week and chip companies seesawed after agreeing to share a portion of revenue from China sales with the US under a trade policy shift from the Trump administration. Nvidia and Advanced Micro Devices reversed premarket losses and were last up 0.2% and 2.6%, respectively, in volatile trading. A US official told Reuters the semiconductor majors had agreed to give the United States government 15% of revenue from sales of their advanced chips to China. Analysts said the levy could hit the chipmakers' margins and set a precedent for Washington to tax critical US exports, potentially extending beyond semiconductors. 'A lot of people are not sure what to make of that because this is the first time in history that it's ever happened where an administration wants a percentage of the profits from a publicly traded company,' said Michael Matousek, head trader at US Global Investors Inc. Enabling semiconductor sales to China was an integral issue in the agreement Washington and Beijing signed earlier this year, which expires on Tuesday. US President Donald Trump lauded China's cooperation in talks at a White House news conference earlier on Monday. At 11:59 a.m. ET, the Dow Jones Industrial Average fell 91.43 points, or 0.21%, to 44,084.19, the S&P 500 gained 6.87 points, or 0.11%, to 6,396.39, and the Nasdaq Composite rose 60.17 points, or 0.28%, to 21,510.19. Six of the 11 major S&P 500 sectors slipped, while healthcare gained 0.4%, recovering some of the 5% declines it had logged so far this year. Traders took a step back after last week's rally helped the S&P 500 and the Nasdaq log their strongest weekly performance in more than a month. On Monday, the tech-heavy Nasdaq was on track for its third consecutive record closing high, if gains hold. Investors expect that the recent shakeup at the US Federal Reserve and signs of labor market weakness could nudge the central bank into adopting a dovish monetary policy stance later this year, fueling much of the optimism. July's consumer inflation report is due on Tuesday and investors currently anticipate that the Fed will lower borrowing costs by about 60 basis points by December, according to data compiled by LSEG. Citigroup and UBS Global Research became the latest brokerages to raise their year-end targets for the benchmark S&P 500. Micron Technology raised its forecast for fourth-quarter revenue and adjusted profit, sending its shares rising 3%. Intel was up 5.4% after a report said CEO Lip-Bu Tan was expected to visit the White House. Trump had called for his removal last week.
Qatar Tribune
2 days ago
- Business
- Qatar Tribune
Wall Street stocks ease, chip setor wobbles after China sales deal
Agencies New York Wall Street's main indexes were down on Monday as investors await inflation data this week and chip companies seesawed after agreeing to share a portion of revenue from China sales with the US under a trade policy shift from the Trump administration. Nvidia was flat after reversing premarket losses, and Advanced Micro Devices was up 0.5 percent in volatile trading. A US official told Reuters the semiconductor majors had agreed to give the United States government 15 percent of revenue from sales of their advanced chips to China. Analysts said the levy could hit the chipmakers' margins and set a precedent for Washington to tax critical US exports, potentially extending beyond semiconductors. 'A lot of people are not sure what to make of that because this is the first time in history that it's ever happened where an administration wants a percentage of the profits from a publicly traded company,' said Michael Matousek, head trader at US Global Investors. Enabling semiconductor sales to China was an integral issue in the agreement Washington and Beijing signed this year, which expires on Tuesday. US President Donald Trump lauded China's cooperation in talks at a White House press conference on Monday. At 2:01 p.m. ET (1801 GMT), the Dow Jones Industrial Average fell 176.88 points, or 0.40 percent, to 43,998.91, the S&P 500 lost 5.60 points, or 0.09 percent, to 6,383.93, and the Nasdaq Composite lost 12.87 points, or 0.06 percent, to 21,437.15. Traders took a step back after the S&P 500 and the Nasdaq last week logged their strongest weekly performances in more than a month. On Monday, the tech-heavy Nasdaq was on track for its third consecutive record closing high, if gains hold. Investors expect the recent shakeup at the US Federal Reserve and signs of labor market weakness could nudge the central bank into adopting a dovish monetary policy stance later this year, fueling much of the optimism. July's consumer inflation report is due on Tuesday, and investors anticipate that the Fed will lower borrowing costs by about 60 basis points by December, according to data compiled by LSEG. 'Markets are on rate watch, so anything inflation-related will move markets this week,' said Jamie Cox, managing partner at Harris Financial Group. 'It's all about three rate cuts versus two atthis point.'
