Nasdaq set to dip at open as chipmakers slip

By Ankika Biswas and Shreyashi Sanyal

(Reuters) – The was headed for a lower open on Monday, as chipmakers bore the brunt of U.S. efforts to hobble China’s semiconductor industry with new export rules, while the escalating Ukraine war took a toll on investors’ risk appetite.

Intel Corp (NASDAQ:), Nvidia (NASDAQ:) Corp, Qualcomm (NASDAQ:) Inc, Micron Technology Inc (NASDAQ:) and Advanced Micro Devices (NASDAQ:) were all down between 0.2% and 1.2% in premarket trading.

Major U.S. banks are set to kick off the third-quarter earnings season on Friday, amid anxiety about the impact of inflationary pressures, rising interest rates and geopolitical uncertainties on their profit.

Earnings for companies have now been estimated to rise 4.1% for the latest three months, down from an increase of 11.1% at the beginning of July, as more analysts price in a downturn next year, according to Refinitiv data.

The U.S. bond market was shut for Columbus Day holiday on Monday.

“It’s one of those strange quasi-holidays where stock markets are open, but bond markets are closed. We really have little or no economic data and no real hard catalyst for the markets today,” said Art Hogan, chief market strategist at B. Riley Wealth.

“Volumes will be low, stocks will likely meander and wait for some real catalyst and for everyone to be back on the playing field tomorrow.”

Russia struck Ukrainian cities during rush hour on Monday morning, killing civilians and destroying infrastructure after President Vladimir Putin declared an explosion on the bridge to Crimea as a terrorist attack.

At 8:38 a.m. ET, were up 39 points, or 0.13%, were up 2.25 points, or 0.06%, and were down 10.5 points, or 0.09%.

Wall Street fell sharply on Friday following a solid jobs report for September that increased the likelihood of the U.S. Federal Reserve sticking to its aggressive interest rate hiking campaign and likely pushing the U.S. economy into a recession.

Money markets are pricing in an 89% chance of another 75 basis-point hike at the Fed’s November meeting.

As economic data continues to point to price pressures, investors will keep a close watch on comments from Fed’s Chicago President Charles Evans and Vice Chair Lael Brainard.

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