The Dow Jones Industrial Average and other major indexes experienced a decline on Monday, as Intel and Advanced Micro Devices faced a setback when China blocked the use of their chips in government computers and servers. Additionally, Tesla stock took a hit following an analyst downgrade. The market opened with the Dow Jones down by 0.2%, the S&P 500 losing 0.3%, and the Nasdaq composite falling by 0.7%.
The news of China implementing guidelines to exclude Intel and AMD chips from government PCs and servers contributed to the decline in Intel shares by nearly 4% and AMD stock by 3.8%. Tesla shares also faced a 1% drop after being downgraded by Mizuho Securities. The 10-year Treasury yield remained relatively flat at 4.23%, while oil prices saw a slight increase as West Texas Intermediate futures traded near $81 a barrel. This shift in the market reflects the ongoing impact of geopolitical decisions on key technology companies and their stock prices.
Looking ahead, the coming week is expected to have light economic data releases, with the focus on the Labor Department’s Personal Consumption Expenditures price index. Earnings reports from companies like Jefferies Financial, Paychex, Carnival, and RH are anticipated. The stock market will be closed for Good Friday, offering investors a shortened trading week to navigate changes in market conditions and stock performance.
