Dow set to fall 100 points as chip makers drag down tech

0

U.S. stock index futures indicated a lower open Friday a decline in semiconductor stocks pressured the overall technology sector.

At around 7:20 a.m. ET, Dow Jones Industrial Average futures were down 131 points, indicating a lower open of 112.27 points. Nasdaq 100 and S&P 500 futures also pointed to lower opening trades.

The VanEck Vectors Semiconductor ETF (SMH) fell 3.4 percent in the premarket after Nvidia reported weaker-than-expected revenue for its previous quarter. The company also posted disappointing guidance, sending the stock down nearly 18 percent before the bell.

The weakness in chip stocks dragged the technology sector, with the Technology Select Sector ETF (XLK) falling 1.1 percent in the premarket.

investors also fretted over political developments overseas amid heightened fears the U.K. could soon crash out of the European Union without a divorce deal. The British pound suffered its biggest one-day loss against the euro since October 2016 on Thursday, as a flurry of resignations rocked the government of U.K. Prime Minister Theresa May.

In the previous session, major stock indexes snapped multi-day losing streaks as J.P. Morgan Chase led banks higher and iPhone maker Apple rebounded after dipping into bear market territory earlier this week.

A number of economic data are expected on Friday. Industrial production numbers are expected to be released at 9:15 a.m. ET, followed by a Quarterly Services Report at 10 a.m. ET, a Kansas City Fed Manufacturing Index at 11 a.m. ET and the Baker-Hughes Rig Count at 1:00 p.m. ET.

At 11:30 a.m. ET, Chicago Federal Reserve Bank President Charles Evans is due to speak about current economic conditions and monetary policy at a roundtable in Chicago.

LEAVE A REPLY

Please enter your comment!
Please enter your name here