S&P 500 Drops 0.7% on Aug 9, 2023: Tech Stocks Slide Ahead of Crucial Inflation Report
On August 9, 2023, the S&P 500 declined by 0.7%, driven by a fall in technology shares as investors awaited Thursday’s pivotal consumer inflation data that could influence Federal Reserve interest rate decisions.
Bill McColl brings over 25 years of expertise as a senior producer and writer across TV, radio, and digital platforms, leading teams in delivering impactful news coverage on major global events.
Highlights
- On August 9, 2023, the S&P 500 index fell 0.7%, pressured by declines in the tech sector ahead of a key inflation report.
- Paramount Global shares dropped 4.5% following warnings from Sony about the negative impact of ongoing actors and writers strikes on quarterly sales.
- Akamai Technologies saw an 8% increase as demand for cybersecurity solutions surged.
The S&P 500 experienced a 0.7% decrease due to weakness in technology stocks, as investors prepared for Thursday’s critical consumer price index report that could signal whether the Federal Reserve will maintain or adjust interest rates to combat inflation.
Paramount Global (PARA) was among the biggest decliners, falling 4.5% after Sony (SONY) cautioned that the ongoing strike by actors and writers would negatively affect revenue for the current quarter.
Shares of Meta Platforms (META) declined by 2% as the company expanded its social media offerings with new apps on Threads, its platform dubbed the “Twitter Killer,” despite losing about half of its initial users since launch last month. Xylem (XYL) shares also slipped 2% following a bearish report from Spruce Point Capital Management, forecasting a potential 30% to 45% long-term decline.
Leading the gains, Axon Enterprise (AXON) surged 14% after reporting stronger-than-expected earnings and raising its outlook, fueled by robust sales growth in its cloud services segment. Akamai Technologies (AKAM) followed with an 8% rise as its optimistic guidance reflected heightened demand amid increasing cybersecurity threats.
FleetCor Technologies (FLT) shares climbed 6% after beating earnings and revenue estimates and raising its forecast, supported by higher fuel card sales. First Solar (FLSR) shares rose nearly 4% on news of plans to construct a fifth manufacturing facility in the U.S.
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