(Reuters) – The New York Stock Exchange ended lower on Friday as concerns over weak demand weighed on semiconductor manufacturers, while growth stocks were affected by rising Treasury yields.
The Dow Jones index fell -0.83%, or 288.87 points, to 34,618.24 points.
The broader S&P-500 lost -54.78 points, or 1.22%, to 4,450.32 points.
The Nasdaq Composite fell 217.72 points (-1.56%) to 13,708.34 points.
Chipmakers Applied Materials, Lam Research and KLA Corp all fell after Reuters reported that Taiwanese semiconductor maker TSMC asked its major suppliers to delay equipment deliveries.
Nvidia, Advanced Micro Devices, Broadcom and Micron Technology also fell.
Fears about demand for semiconductors in the automobile sector also weighed, as the American Auto Workers Union launched a simultaneous strike overnight from Thursday to Friday in three factories of General Motors, Ford Motor and Stellantis.
Treasury yields rose slightly ahead of the U.S. Federal Reserve’s (Fed) policy meeting next week, as the central bank faces a strong U.S. economy and inflation that remains above target fixed.
“We really continue to see the resilience of growth, and I think it’s tough for the market just because there are concerns about what that could mean for rates and inflation,” Lisa said. Erickson, head of public markets at US Bank Wealth Management in Minneapolis.
Traders widely expect the Fed to hold rates steady at its Sept. 20 meeting, according to the FedWatch barometer.
Yield-sensitive technology companies such as Amazon, Microsoft and Meta Platforms ended lower.
Arm Holdings remained stable the day after its stock market debut on the Nasdaq which saw the stock jump 25% compared to the indicative price of its IPO.
Neumora Therapeutics, a company also supported by the Japanese conglomerate Softbank, parent company of Arm, made its stock market debut in New York this Friday, after raising $250 million for its IPO.
(Reporting Ankika Biswas, Shristi Achar A and Noel Randewich; Camille Raynaud)
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