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Equities Roundup: IT Sector Underperforms

US STOCKS
  • Stocks are trading weaker at midday after climbing to the best levels in ten days this morning. Currently, S&P E-Mini futures are down 38.25 points (-0.84%) at 4560.25, Nasdaq down 175.8 points (-1.3%) at 13953.78, DJIA down 179.4 points (-0.51%) at 34962.26.
  • Weakness came after a hawkish ECB sources story in the FT overnight sapped risk appetites ahead the weekend. Markets had traded positively after Thursday's ECB rate hike messaging was deemed less hawkish at the time. Meanwhile, market focus remains on next Wednesday's FOMC announcement where the Fed is expected to hold rates steady while maintaining a tightening bias.
  • Laggers: Information Technology, Consumer Discretionary and Communication Services sectors underperformed. Chip stocks lagged hardware makers for the second day running: KLA Corp -4.45%, Applied Materials -4.25%, AMD -3.8%, while Nvidia slipped -3.08%.
  • Consumer Discretionary weighed by weakness in broadline retailers: Etsy -2.6% Amazon -2.5% at noon. Interactive media weighed on the Com sector with Meta -2.45%, Google -0.7%.
  • Leaders: Utilities and Health Care sectors outperformed. Multi-service providers buoyed the former: CenterPoint +0.7%, Dominion +0.6%, Public Service Ent +0.55%. Meanwhile, services providers buoyed the Health Care sector: CVS +1.65%, DaVita +0.8%, Centene +0.6%.

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