https://finance.yahoo.com/news/growth-fears-set-crimp-asia-222615674.html
(Bloomberg) — Stocks retreated as a downbeat outlook from another giant chipmaker added to recession fears, with traders awaiting Wednesday’s inflation report to gauge the path of Federal Reserve tightening.
The S&P 500 dropped for a fourth consecutive session, while the Nasdaq 100 underperformed after Micron Technology Inc., the largest US maker of memory semiconductors, said sales may come in at the low end of or below its previous guidance. Treasury yields climbed, while the dollar fell.
Focus is turning to the question of whether US consumer-price index may have peaked in June after a blowout jobs reading eased worries about a recession, while corporate performance remained generally strong.
The rebound in US stocks has turned fragile, with stronger-than-expected economic data dulling optimism that the Fed would moderate the pace of rate hikes. Still, many are drawing confidence from corporate earnings for S&P 500 companies that have beat or met expectations in 81% of cases.
“Until inflation abates and the Federal Reserve rebalances its priorities away from inflation and toward growth, tempting rallies are likely to remain unsustainable,” Seema Shah, chief strategist at Principal Global Investors, wrote in a note to clients.
Elsewhere, oil reversed an earlier decline as Russian shipments via the southern leg of a major pipeline to Europe were suspended.
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