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The
memory chipmaker's shares lost 5.5% premarket after
fourth-quarter revenue forecast came largely along expectations
and disappointed investors upbeat about its performance in the
AI boom. Optimism around AI-driven demand had lifted the stock
14% this month ahead of earnings.
Other semiconductor stocks including Nvidia, Arm Holdings,
Qualcomm and Advanced Micro Devices were down between 0.8% and
1.1%.
With a handful of expensive heavily weighted stocks supporting
Wall Street's ascent since the last leg of 2023, market
participants have highlighted concerns over the rally's
sustainability and have called out for the need to diversify
portfolios to hedge against possible sharp losses.
Wall Street's three major indexes eked out modest gains in
Wednesday's choppy trading, with Amazon.com hitting $2 trillion
in market value for the first time. The retail giant's shares
edged lower on Thursday in lackluster trading for megacap tech
stocks.
Focus now shifts to a slate of economic data including durable
goods for May, weekly jobless claims and first-quarter PCE and
GDP figures before markets open, just a day ahead of the Federal
Reserve's preferred inflation gauge- the monthly personal
consumption expenditures (PCE) price index.
Investors have largely stuck to their view of around two rate
cuts this year, as per LSEG's FedWatch data, even though the
U.S. central bank has projected only one. Chances of an at least
25-basis-point rate cut in September stand at 56.4%.
Further, President Joe Biden and former President Donald Trump
are set to face each other in the first debate during the day,
ahead of their rematch this November.
At 5:27 a.m. ET, Dow e-minis were down 73 points, or 0.18%, S&P
500 e-minis were down 8.75 points, or 0.16%, and Nasdaq 100
e-minis were down 39.5 points, or 0.2%.
Further on the earnings front, Walgreens Boots Alliance will
detail its results before the market's open, with its shares up
2.1% in early trade, while Nike is due after the closing bell.
Denim maker Levi Strauss slumped 15% after falling short of
expectations for second-quarter revenue, while U.S.-listed
shares of Canada's BlackBerry rose 7.2% after beating
first-quarter revenue estimates.
International Paper dropped 14.8% after the world's largest pulp
manufacturer, Brazil's Suzano, terminated talks to buy the
U.S.-based firm.
(Reporting by Ankika Biswas in Bengaluru; Editing by Maju
Samuel)
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