Market Update: Chip Stocks Weigh Down Nasdaq and S&P 500, Housing Starts Beat Expectations, U.S. Economic Activity Slows

The stock market experienced a turbulent day of trading, with the Nasdaq 100 and S&P 500 both falling significantly. The decline was attributed to major chip stocks weighing down the market. However, there was some positive news in the real estate sector, as the Census Bureau reported better-than-expected U.S. Housing Starts and Building Permits data for June.

On the economic front, the Federal Reserve’s Beige Book report indicated that U.S. economic activity is slowing down, with most districts experiencing only slight to modest growth. Household spending remained steady, while auto sales dropped in some areas due to a cyberattack on dealerships and high interest rates. Demand for loans also decreased, but travel and tourism saw an expected increase for the season.

Looking ahead, there is uncertainty in the market due to factors such as the upcoming election, geopolitical tensions, and inflation. Meanwhile, U.S. futures were down on Wednesday morning after the Dow Jones Industrial Average hit a new record high. Key earnings releases from companies like UnitedHealth and Bank of America also influenced market movements.

In Asia-Pacific markets, indices traded mixed, with Japanese stocks benefiting from business optimism among large manufacturers, while Chinese stocks evaluated President Xi Jinping’s comments at the Third Plenum session. Overall, the global market continues to face challenges and uncertainties as investors navigate through various economic and geopolitical factors.