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Wall Street closed the previous session lower as a grim outlook
from Target Corp sparked concerns about retailers heading into
the crucial holiday season, while semiconductor shares slid 4.3%
after Micron Technology Inc's supply cut.
Shares of Nvidia Corp rose 2.2% in early premarket trading on
Thursday after the company beat estimates for third-quarter
revenue, helped by strong demand in its data center business.
Peers Advanced Micro Devices Inc and Intel Corp added 1.2% and
0.4%, respectively.
Stronger-than-expected retail sales numbers on Wednesday raised
concerns that continued strength in spending will keep the U.S.
Federal Reserve on track to tighten monetary policy further,
even as subsiding inflation gives the central bank room to scale
back the size of its interest rate hikes.
"Wall Street was rattled by a conflicting retail picture," said
Susannah Streeter, senior investment and markets analyst at
Hargreaves Lansdown.
"Overall sales were stronger than expected showing consumer
resilience had not been knocked by super-sized interest rate
hikes aimed at pulling down the price spiral. This has added to
expectations that higher rates will have to linger for a lot
longer to make a difference."
J.P.Morgan economists predict a "mild recession" in the back
half of next year given expectations for the Fed to tighten
monetary policy further in its battle against inflation.
At 04:39 a.m. ET, Dow e-minis were down 41 points, or 0.12%, S&P
500 e-minis were down 4.75 points, or 0.12%, and Nasdaq 100
e-minis were down 8.75 points, or 0.07%.
Megacap growth and tech companies such as Tesla Inc added 0.4%,
while Amazon.com Inc was subdued in early trading before the
bell.
U.S.-listed shares of NetEase Inc fell 4% after Blizzard
Entertainment said it will no longer offer games such as "World
of Warcraft" and "Hearthstone" in China from next year.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by
Shounak Dasgupta)
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