Dell Technologies and HP Inc. both saw their stocks drop significantly on Wednesday after issuing disappointing quarterly forecasts. This contributed to a broader decline in tech stocks, which pushed the Nasdaq down by 0.6%.
The release of inflation data also weighed on Wall Street. The personal consumption expenditures (PCE) index, a key measure of inflation, rose by 2.3% in October compared to a year ago. This increase in inflation put additional pressure on the market.
The Dow Jones Industrial Average fell by 0.31%, while the S&P 500 dipped by 0.38%. The Nasdaq Composite, heavily influenced by tech stocks, experienced the biggest decline at 0.6%.
Tech sector impact on Nasdaq
Other economic data released on Wednesday included the third quarter Gross Domestic Product (GDP), which remained unrevised at 2.8%. Weekly jobless claims came in at 213,000. Traders on the floor of the New York Stock Exchange (NYSE) reacted to the news, reflecting the market’s sensitivity to economic indicators and corporate earnings projections.
Despite Dell and HP’s downbeat forecasts, some analysts believe the tech sector still has potential for growth. However, disappointing corporate outlooks and rising inflation have made investors more cautious. The market’s reaction to the inflation data suggests that concerns about rising prices and their impact on the economy remain a key focus for investors.
The Federal Reserve has been closely monitoring inflation and has indicated it may need to raise interest rates to keep prices in check. As the holiday shopping season gets underway, investors will be watching closely to see how consumer spending holds up in the face of higher prices and economic uncertainty. The performance of tech companies, which have been a key driver of the market’s growth in recent years, will also be closely scrutinized.
