Intel outlook causes chip value sell-off on Wall Street

Intel outlook causes chip value sell-off on Wall Street

According to a report by www.n-tv.de, Intel is the topic of the day on Wall Street on Friday. The chip giant's sales outlook is causing dissatisfaction among investors, and the stock is posting double-digit losses. Other semiconductor stocks are also affected, while American Express shares are in demand. Intel's weak forecast is weighing on the stock markets, but positive economic data is limiting price losses for high-tech stocks. The Dow Jones index closed 0.2 percent higher, while the Nasdaq fell 0.4 percent and the S&P 500 fell 0.1 percent.

Intel is forecasting sales of between $12.2 and $13.2 billion and a profit of $0.13 per share for the new quarter. These numbers fell short of market expectations, causing Intel shares to fall by almost twelve percent. The titles from rivals such as Nvidia, AMD, Lam Research and Marvell also lost between almost one and a good three percent. The hope that interest rates from the US Federal Reserve will fall soon after the latest economic data is limiting price losses. The monetary authorities are trying to curb high inflation by tightening monetary policy. The expectation that interest rates may remain high for a longer period of time is depressing the dollar index.

The credit card provider American Express increased profits and sales in the fourth quarter, which led to a rise in shares of a good seven percent. Visa, on the other hand, forecasts sales for the current quarter to be below market expectations, which led to a decline in shares of almost two percent. Colgate-Palmolive posted fourth-quarter sales of $4.95 billion thanks to increased prices, sending shares up about 2 percent.

The delay in the recovery of the chip sector, the impact of money supply growth and the inevitable increase in interest rates are creating uncertainty in the financial industry. Expectations of the US Federal Reserve and its monetary policy decisions are now being followed particularly closely by investors. This sell-off in chip stocks could also affect other technology and high-tech companies and lead to a general market correction. Investors should therefore carefully review their portfolios and adjust them if necessary to minimize possible losses.