US sharemarkets finished lower on Tuesday as weakness in major technology stocks and uncertainty over the Iran war weighed on sentiment ahead of key inflation data.
The S&P 500 fell 0.32% to 7,728.20, marking its second consecutive decline, while the Nasdaq Composite lost 0.60% to 26,445.45. The Dow Jones Industrial Average dropped 184.13 points, or 0.34%, to 53,791.85.
Communication services led the declines, falling more than 2%. Alphabet dropped 3.8%, extending recent weakness following Google’s decision last week to restructure its artificial intelligence divisions, while AppLovin fell almost 6%.
Technology stocks also came under pressure. Nvidia gave up an earlier gain to finish slightly lower despite announcing a partnership with six major asset managers aimed at mobilising more than US$500 billion for AI infrastructure. Apple fell more than 1%.
The latest earnings season has nevertheless remained broadly positive. Bespoke Investment said 77% of companies reporting second-quarter results have beaten consensus earnings estimates, with technology recording the strongest beat rate at 85.1%.
Investors also monitored developments in the Iran war after an Iranian official reiterated that the Strait of Hormuz would remain closed until Tehran’s conditions are met. However, Pakistan’s Defence Minister Khawaja Asif provided some encouragement, saying developments were again moving towards the possibility of a peace agreement.
Australian Market Outlook
Australian shares are set to open lower, following declines on Wall Street and a further rise in oil prices.
S&P/ASX 200 futures are down 40 points, or 0.4%, to 9,147.
The August reporting season takes centre stage locally, with Commonwealth Bank, AGL Energy, Arena REIT, Computershare, Bravura Solutions, Seek and Suncorp scheduled to report today.
There is no major Australian economic data due, leaving investors focused on company results and offshore developments. The key macro event will be the US July CPI report at 10.30pm AEST, which could influence expectations for the Federal Reserve’s next interest rate move.
