By Ankika Biswas and Shristi Achar A
(Reuters) - Nasdaq led Wall Street lower on Friday as shares of chip-equipment makers fell after the world's top semiconductor firm, TSMC, asked its vendors to delay chip equipment deliveries, while rising Treasury yields pressured major megacap stocks.
Adobe (NASDAQ: ADBE ) dropped 4.0% to a more than two-week low after the Photoshop software maker disclosed a commercial paper program of up to $3 billion on Sept. 8 following its third-quarter results.
The information technology and consumer discretionary stocks were among the top S&P 500 sectoral losers, both down more than 1%.
SoftBank's Arm Holdings gained 2.4% after a stellar Nasdaq debut on Thursday, rekindling hopes of a turnaround in the initial public offering (IPO) market.
"The fact that the performance was good suggests the potential for more new issues, which is probably good for both the market and for the banking sector," said Rick Meckler, partner at Cherry Lane Investments.
Arm's strong debut prompted grocery delivery app Instacart to raise the proposed price range for its IPO to target a fully diluted valuation of up to $10 billion.
Investors are also focused on Neumora Therapeutics' debut later in the day after the SoftBank-backed firm raised $250 mln in its U.S. IPO.
Easing worries about a recession without and optimism over an interest-rate pause next week had pushed U.S. stocks higher on Thursday.
Traders' bets on the Federal Reserve holding rates steady in its Sept. 20 policy meeting remained intact at 97%, while their odds for a pause in November stood at nearly 68%, according to the CME FedWatch Tool.
"The general market view is that if we're not at the top of the rate prices, we're extremely close (to the end of rate-hikes) and small deviations in CPI or PPI probably won't change that," Meckler added.
The expiry of quarterly derivatives contracts tied to stocks, index options and futures, also known as "triple witching", later in the day is expected to keep markets volatile.
At 10:06 a.m. ET, the Dow Jones Industrial Average was down 29.31 points, or 0.08%, at 34,877.80, the S&P 500 was down 19.65 points, or 0.44%, at 4,485.45, and the Nasdaq Composite was down 119.74 points, or 0.86%, at 13,806.32.
The United Auto Workers union launched simultaneous strikes at three factories owned by the "Detroit Three", including Chrysler-owner Stellantis, marking the most ambitious U.S. industrial labor action in decades.
Declining issues outnumbered advancers by a 1.36-to-1 ratio on the NYSE and by a 1.46-to-1 ratio on the Nasdaq.
The S&P index recorded six new 52-week highs and five new lows, while the Nasdaq recorded 23 new highs and 75 new lows.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.