Key Takeaways
- U.S. equities were mixed around midday as investors focused on what will happen Wednesday, when the Federal Reserve is expected to begin cutting interest rates.
- Intel received a $3.5 billion contract to build chips for the U.S. military, reports Bloomberg. Its shares rose.
- Reports indicate demand for Apple’s new iPhone 16 is lower than anticipated.
U.S. equities were mixed at midday as the market remained on hold.
Investors are awaiting this week’s Federal Reserve meeting, where policymakers are expected to begin cutting interest rates. The Dow was up and traded at an all-time intraday high. The S&P 500 and Nasdaq fell.
Intel (INTC) shares gained following a report the biggest semiconductor maker struck a $3.5 billion deal with the Pentagon to make chips for the U.S. military. Shares of Alcoa (AA) rose as the aluminum giant announced it was selling off its 25.1% stake in its joint venture with Saudi Arabia Mining Company, known as Ma’aden, in a deal valued at $1.1 billion.
Trimble (TRMB) shares advanced after the software provider sold its global transportation telematics business units to transportation technology firm Platform Science. Trimble will receive a 32.5% stake in the newly expanded global Platform Science business and get a seat on the board.
Apple (AAPL) shares dropped on reports that demand for its new iPhone 16 is lower than expected. The news sent shares of Qorvo (QRVO) and other suppliers of Apple chips down as well. Shares of another semiconductor firm, Micron Technology (MU), fell after Morgan Stanley warned that the memory-chip market is oversupplied.
Walgreens Boots Alliance (WBA) shares declined. The biggest U.S. pharmacy chain agreed to pay $106.8 million over government claims it billed federal healthcare programs for prescriptions that were never filled.
Oil futures rose. Gold prices were little changed. The yield on the 10-year Treasury note dipped. The U.S. dollar lost ground to the pound and yen. Most major cryptocurrencies traded lower.
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