- Tech stocks weigh down Wall Street session
- Chegg stocks down 22%
- Key news from the weight loss drug sector
US markets are opening Tuesday’s cash session in relatively good mood. 10 minutes after the opening of Wall Street, the Nasdaq is down 0.35%, while the S&P500 is adding 0.11%. The initial declines are driven by uncertainty about the development of the Chinese technology sector, which the United States wants to stop, especially in the semiconductor sector.
Current volatility observed on Wall Street. Source: xStation
US100
The Nasdaq-100 index, represented by the US100 contract, is trading 0.35% lower today compared to yesterday’s close. The index continues to maintain a strong uptrend as long as the demand side is able to sustainably maintain the 50-day EMA (blue line) and 100-day EMA (purple line).
Source: xStation 5
News
Tech stocks are under downward pressure today as the United States announced plans to curtail the capabilities of the Chinese semiconductor sector. However, the scale of the sell-off is not particularly large. Advanced Micro Devices (AMD.US) shares are down 0.2%, and Intel (INTC.US) is down 0.7%.
Chegg (CHEGG.US) shares are down 24% after the company provided a poor Q1 revenue forecast. Management is starting a strategic review process and has filed a complaint against Google, claiming that it “wrongfully” stopped traffic that historically went to Chegg. Investors are also concerned about the impact of AI developments on the company’s revenue-generating capabilities.
Eli Lilly & Co. (LLY.US) is also doing relatively well, adding 1.3% as it lowers the price of its Zepbound drug to combat growing competition. In the same sector, Hims & Hers Health (HIMS.US) is also seeing big moves, down 22% after the company said it would soon stop selling some of its compounded weight-loss drugs.
The widespread sell-off in crypto is also driving big sell-offs in shares of companies closely tied to the sector. Shares of giants such as Microstrategy (MSTR.US) and Coinbase (COIN.US) are currently down 5% and 2.6%, respectively.
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