US stocks drop again as semiconductor shares slide

Wall Street stocks fell again on April 17, extending a weak stretch ahead of earnings from tech giants and influential industrial companies.

With hopes ebbing for a significant easing of US monetary policy in 2024 and angst over conflict in the Middle East, stocks have been under pressure in recent sessions.

“The only thing that is going to pull the market higher is earnings,” said Spartan Capital’s Mr Peter Cardillo, pointing to a wave of results from big companies starting later this week with Netflix.

The Dow Jones Industrial Average slipped 0.1 per cent to 37,753.31.

The broad-based S&P 500 dropped 0.6 per cent to 5,022.21, while the tech-rich Nasdaq Composite Index fell 1.2 per cent to 15,683.37.

A US Federal Reserve report said there has been “modest” growth in many parts of the country since late February.

“Overall economic activity expanded slightly, on balance,” the Fed said in its summary of US economic conditions known as the “beige book”.

Chip companies, which have enjoyed a banner 2024 on bullishness over artificial intelligence, endured a rough session.

Nvidia dropped 3.9 per cent, AMD lost 5.8 per cent and Micron Technology shed 4.5 per cent.

United Airlines surged 17.5 per cent as the US carrier released a bullish second-quarter forecast, even as it reported a loss due to a temporary grounding of some Boeing planes during the first quarter.

But Dow member Travelers sank 7.4 per cent as it reported disappointing quarterly results, with catastrophe losses jumping.

The insurer cited severe wind and hail storms in the eastern and central regions of the US. AFP