Chip makers lead Wall Street lower on concerns over China
Texas Instruments, Microsoft, AT&T and Intel all fall on a sour outlook from chip makers
Bengaluru — US stocks dropped on Wednesday as weak results from AT&T and a sour outlook from chip makers ahead of key earnings added to growing worries about corporate profit growth and overshadowed optimism from Boeing’s raised forecast. A slew of results this week is expected to throw a spotlight on the risk of a slowdown in China, the world’s number two economy, spilling beyond its borders and eating into US corporate profits. “The biggest theme is the trade front and what’s going on with China’s slowdown ... because it’s such a big demand-space for a lot of industrial and tech companies,” said Shawn Cruz, manager of trader strategy at TD Ameritrade in New Jersey. “Right now with earnings season going on ... there’s plenty to focus on that can give you an idea on what China is doing and what impact tariffs are having on a lot of these companies.” Chip makers, already struggling with over-supply and reliant on China for a significant portion of profit, dropped after Texas Instrume...
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