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Equities Slide With Higher Terminal, Gloomy Chip Outlook

US STOCKS
  • A tough day for equities continues, with Nasdaq extending declines to -3.1% (now down almost 10% on the month) and SPX -2%.
  • In a reversal of yesterday’s gains, today’s drivers of SPX are IT (-3.5%) and consumer discretionary (-2.9%) whilst health care (-0.6%) and consumer staples (-0.7%) outperform.
  • A gloomy outlook from chipmaker Micron Technology Inc. weighed on both indexes, whilst from a macro perspective, higher Fed terminal pricing is a culprit at 4.89% in May’23 for +4bp since stronger data.

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