Wall Street is reacting to the Biden administration's possible ban on AI chips to China
Futures on the Dow Jones Industrial Average (DJIA), S&P 500 Index (SPX), and Nasdaq-100 Index (NDX) are all lower this morning. The tech and semiconductor sector could be in trouble today, after the Wall Street Journal reported the Biden administration was weighing restricting sales of artificial intelligence (AI) chips to China. Investors are also looking ahead to remarks from Federal Reserve Chairman Jerome Powell's before the European Central Bank (ECB). Ahead of the comments, Treasury yields have ticked lower.
Continue reading for more on today's market, including:
- Best and worst stocks to own around 4th of July, per Schaeffer's Senior Quantitative Analyst Rocky White.
- REIT presents attractive entry point.
- Plus, analyst praises ZoomInfo; PINS upgraded; and more on the chip sector.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.4 million call contracts and 785,811 put contacts exchanged on Tuesday. The single-session equity put/call ratio fell to 0.52 and the 21-day moving average stayed at 0.67.
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ZoomInfo Technologies Inc (NASDAQ:ZI) stock is up 5.6% in premarket trading, after Needham initiated coverage with a "buy" rating and $35 price target, a 33% premium to last night's close. The brokerage firm noted the software company's "best in class unit economics.” Year-over-year, ZI is still down 19.8%.
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Wells Fargo upgraded
Pinterest Inc (NYSE:PINS) stock to "overweight" from "equal weight," with the analyst in question noting
efforts to outsource monetization and highlighting a partnership with Amazon.com (AMZN). PINS is up 4.4% ahead of the open and sports an 8.7% year-to-date lead.
- Chip sector and artificial intelligence (AI) headwinds are blowing today after the Wall Street Journal report, with Nvidia Corp (NASDAQ:NVDA) down 3.6% before the open. In the last nine months though, NVDA is up a whopping 235.4%.
- The goods trade balance and retail inventories ex auto are due out today.
Asian Markets Mixed After China's Industrial Profit Data
Markets in Asia finished the day on both sides of the aisle, after China’s industrial profits fell 18.8% in the first five months of 2023 from the year before. Japan’s Nikkei enjoyed a 2% pop, while Hong Kong’s Hang Seng rose 0.1%. China’s Shanghai Composite inched just barely lower, while the South Korean Kospi dropped 0.7%.
European markets are higher midday, after yesterday breaking a losing streak. London’s FTSE 100 is up 0.7% at last glance, while the French CAC 40 and German DAX are both 0.8% higher.