Wall Street ends sharply lower as chipmakers and megacaps slide

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Wall Street ends sharply lower as chipmakers and megacaps slide
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NEW YORK, Sept 16 ― US stocks ended sharply lower yesterday as chipmakers dropped on concerns about weak consumer demand, while rising Treasury yields pressured Amazon and...

NEW YORK, Sept 16 ― US stocks ended sharply lower yesterday as chipmakers dropped on concerns about weak consumer demand, while rising Treasury yields pressured Amazon and other megacap growth companies.

Stoking worries over chip demand from automakers, the United Auto Workers' union launched simultaneous strikes at factories of General Motors, Ford and Chrysler parent Stellantis. Treasury yields edged higher ahead of the Federal Reserve policy meeting next week, with the central bank facing a strong US economy with inflation that remains above target.

Among growth stocks sensitive to higher interest rates, Amazon and Microsoft each lost more than 2 per cent, and Meta Platforms declined 3.7 per cent. All 11 S&P 500 sector indexes declined, led lower by information technology, down 1.95 per cent, followed by a 1.88 per cent loss in consumer discretionary.

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