Wall Street opens moderately lower dragged by tech shares
- Broadcom cuts revenue forecast citing U.S.-China trade conflict.
- The S&P 500 Technology Index suffers heavy losses in early trade.
Major equity indexes in the U.S. opened in the negative territory on Friday amid heightened geopolitical tensions and sharp losses witnessed in technology shares. As of writing, the Dow Jones Industrial Average and the S&P 500 were both down 0.35% on the day while the tech-heavy Nasdaq was down 0.65%.
Broadcom announced that it cut its revenue forecast due to export curbs on Huawei and the ongoing U.S.-China trade war. The company's shares lost nearly 10% in premarket trading and were last down 7% on the day to weigh on the S&P 500 Technology Index, which was the worst performing major sector with a loss of 1.1%.
On the other hand, confirming the sour market sentiment, the defensive Real Estate and Utilities indexes were both posting modest gains in the early trade.
Meanwhile, today's data from the U.S. revealed that retail sales in May rose by 0.5% following April's 0.3% growth and the industrial production expanded by 0.4% to surpass the market expectation for an increase of 0.2% but was largely ignored by the market participants.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
