By Shashank Nayar
(Reuters) – Tech stocks were expected to drive Wall Street lower on Thursday after the Federal Reserve signaled it could start to cut back on its massive stimulus earlier than expected, mounting pressure on a sector seen as vulnerable to rates of interest. higher interest.
Tech heavyweight stocks Amazon.com Inc (NASDAQ :), Apple (NASDAQ :), Microsoft Corp. (NASDAQ :), Facebook Inc (NASDAQ 🙂 and Alphabet, parent company of Google (NASDAQ 🙂 Inc, which soared last year thanks to a very flexible Fed policy, fell between 0.4% and 0.6% in the first deals .
Investors are now very focused on weekly jobless claims data due at 8:30 am ET and expected to lend credence to the central bank’s projections of a rapid economic recovery.
In a stark surprise Wednesday, the Fed hinted at two rate hikes in 2023, a year earlier than expected, and also said it expects inflation to hit 3.4% this year, well above its initial target of 2%. .
fell to a nearly a month low, with Cisco (NASDAQ 🙂 and Intel Corp. (NASDAQ 🙂 among the top losers in early trading.
Rate sensitive lenders, including Citigroup (NYSE :), JPMorgan Chase (NYSE :), Bank of America (NYSE 🙂 and Wells fargo (NYSE :), meanwhile, rose between 0.4% and 0.7%.
At 6:54 am ET, they were down 76.5 points, or 0.55%, Dow e-minis were down 116 points, or 0.34%, they were down 15.25 points, or 0.36%.
In corporate news, US-listed CureVac NV shares fell 45% after German biotech said Wednesday that its COVID-19 vaccine was 47% effective in a late-stage trial, falling short of the main objective of the study.
Investors are also awaiting quarterly earnings reports from Kroger (NYSE 🙂 and Adobe (NASDAQ 🙂 later in the day.
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