Stocks fell on Tuesday as Samsung’s profit warning took the shine off the sector and the previous day’s gains in tech stocks lost momentum.
The Dow Jones Industrial Average (^DJI) fell 0.6%, or more than 200 points. The benchmark S&P 500 Index (^GSPC) fell 0.4%, and the tech-heavy Nasdaq Composite Index (^IXIC) fell about 0.4%.
Samsung’s latest update weighed on hopes for a recovery in the PC and mobile sectors, the main markets for the company’s memory chips. The company said it expects fourth-quarter operating profit to decline 35%, well below expectations, as demand continues to lag.
The Dow Jones Industrial Average on Monday shook off a sharp drop in Boeing (BA) stock due to the failure of its 737 Max 9 planes, with Big Tech contributing to the stock’s rise. Shares of Alaska Airlines (ALK) and United Airlines (UAL) fell slightly on Tuesday even as the airlines said inspections found loose parts.
The main focus for investors remains Thursday’s December consumer inflation rate and what that means for the possibility of a rate cut. But two Fed officials on Monday poured cold water on Wall Street’s already fading hopes that interest rates could be cut in the coming months.
The idea that inflation is cooling is underpinning investors’ belief that the U.S. economy will avoid recession. That belief will face a serious test Friday, when the fourth-quarter earnings season for major banks begins.
Meanwhile, oil prices (CL=F) (BZ=F) rose more than 1%, paring Monday’s nearly 4% decline as investors weighed tensions in the Middle East and the impact of Saudi Arabia’s decision to cut oil prices. I got some back.
live2 updates
For the latest stock market news and in-depth analysis of price-moving events, click here.
Read the latest financial and business news from Yahoo Finance
