Investing.com– U.S. stock index futures crept lower in evening deals on Thursday as weakness in technology stocks persisted after Alphabet logged steep losses on more regulatory headwinds.
Some uncertainty over interest rates also weighed on stocks after slightly stronger-than-expected jobless claims data, while cautious comments from Federal Reserve officials kept investors wary.
Mixed signals from market darling NVIDIA Corporation (NASDAQ:) also kept sentiment strained, after the chipmaker’s revenue forecast for the current quarter underwhelmed. But Wall Street logged a positive session on Thursday, buoyed by shift out of tech and into economically sensitive sectors.
fell 0.1% to 5,966.0 points, while fell nearly 0.3% to 20,778.25 points by 19:17 ET (00:17 GMT). steadied at 43,980.0 points.
Tech rattled by Alphabet losses, Nvidia caution
Shares of Google owner Alphabet Inc (NASDAQ:) fell 0.4% in aftermarket trade, following a 4.7% tumble during Thursday’s session.
The Department of Justice demanded Google sell its Chrome web browser to help curb the tech giant’s monopoly in online search. The DOJ also recommended the firm share its data and search results with rivals and potentially sell its Android operating system.
The recommendations come after a landmark ruling earlier this year, that Google operated an illegal monopoly in online search.
Sentiment towards tech was also strained by a mixed third-quarter showing from Nvidia. While strong artificial intelligence demand fueled an earnings beat, the AI darling forecast a slower pace of revenue growth in the current quarter.
Analysts, however, remained largely upbeat on the company on its AI prospects, especially as it prepares a new generation of chips. Nvidia fell slightly in evening trade after a mildly positive session on Thursday.
Dec rate cut in question, Wall St upbeat
Risk appetite was also dented this week by growing doubts over whether the Fed will cut interest rates in December. This came after strong inflation readings for October, while the Fed also flagged a more cautious approach to further easing.
data this week showed the U.S. labor market remained strong, while Chicago Fed President Austan Goolsbee reiterated his openness for a slower pace of rate cuts.
Traders were seen scaling back some bets that the Fed will cut rates by 25 basis points in December, showed this week. Traders were pricing in a 61.7% chance for a December cut.
Still, signs of resilience in the U.S. economy encouraged plays into more cyclical sectors such as industrials and banks. This helped Wall Street clock some gains on Thursday.
The rose 0.5% to 5,948.71 points. The lagged on losses in tech stocks, closing mostly flat at 18,973.14 points. The was the best performer for the day, up 1.1% to 43,870.35 points.
Read the full article here
