US stocks closed lower on Tuesday, August 9, as investors treaded cautiously ahead of CPI data that would be released on Wednesday. The data would provide insights into how aggressive the Fed may approach its monetary policy tightening.
The S&P 500 fell 0.42 per cent to 4,122.47. The Dow Jones was down 0.18 per cent to 32,774.41. The NASDAQ Composite lost 1.19 per cent to 12,493.93, and the small-cap Russell 2000 fell 1.46 per cent to 1,912.89.
In addition to that, the investors are also accessing the flurry of corporate earnings and other economic data for cues on which path the economy is heading. Last week's robust job data allayed concerns that the economy is already in recession.
US worker productivity witnessed a sharp decline in the second quarter, the Labor Department report showed on August 9. The report showed that nonfarm business sector worker productivity tumbled 4.6 per cent annually in Q2 FY22 from the previous quarter.
On Tuesday, seven of the 11 segments of the S&P 500 index stayed in the negative territory, with information technology and consumer discretionary sectors declining the most. The energy and utilities sectors were the top movers.
Shares of the semiconductor manufacturing firm Micron Technology (MU) fell 4.69 per cent in intraday trading after the firm trimmed its revenue guidance for the ongoing quarter while warning the investors of a negative free cash flow in the next quarter.
Micron cited supply chain disruptions and cooling demand due to its gloomy forecast.
Norwegian Cruise Line Holdings Ltd. (NCLH) slipped over 11 per cent in the intraday session after the company reported a loss in the latest quarter.
Novavax, Inc. (NVAX) stock slumped 30.38 per cent after the biotechnology firm cut its annual revenue guidance due to cooling demand for its Covid-19 shot.
In the energy sector, Exxon Mobil Corporation (XOM) increased by 1.74 per cent, Chevron Corporation (CVX) gained 1.06 per cent, and TotalEnergies SE (TTE) soared 2.29 per cent.
In utility stocks, NextEra Energy, Inc. (NEE) rose 1.49 per cent, The Southern Company (SO) jumped 1.27 per cent, and Dominion Energy, Inc. (D) advanced 1.11 per cent.
In the technology sector, Taiwan Semiconductor Manufacturing Company Limited (TSM) fell 3.16 per cent, Nvidia Corporation (NVDA) lost 3.95 per cent, and ASML Holding N.V. (ASML) slipped 5.52 per cent.
Futures & Commodities
Gold futures were up 0.34 per cent to US$1,811.35 per ounce. Silver decreased by 0.47 per cent to US$20.517 per ounce, while copper ticked down 0.03 per cent to US$3.5855.
Brent oil futures decreased by 0.26 per cent to US$96.40 per barrel and WTI crude was down 0.18 per cent to US$90.60.
The 30-year Treasury bond yields were down 0.07 per cent to 2.996, while the 10-year bond yields rose 0.58 per cent to 2.779.
US Dollar Futures Index decreased by 0.14 per cent to US$106.170.