Chip stocks are suffering on Wednesday as several factors across the market drag shares down.
The first bit of news that investors will want to know about is Seagate Technology (NASDAQ:STX) laying off employees. Specifically, the company is cutting 3,000 jobs as it deals with decreasing demand and increasing costs.
Not helping matters, Seagate also warns that things won’t get better soon. An outlook update from the company has traders worried about its fiscal second-quarter earnings report. The company is undergoing restructuring to deal with current economic woes as well.
Chip and Tech Stocks Are Both Falling Today
That’s not all, however. Another factor affecting chip stocks today is the slew of poor earnings reports from several tech companies. This news includes Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) missing estimates in its latest report. Of course, Microsoft (NASDAQ:MSFT) did beat estimates, but other concerns from its report are keeping MSFT stock down today.
These negative results are stretching out to related markets, which helps explain why chip stocks are falling right now. It’s also possible this trend could continue in the coming weeks. The upcoming Federal Reserve meeting may lead to further damage for tech stocks, for instance.
Today’s news has STX stock down 6.3%, Nvidia (NASDAQ:NVDA) flat after a fall this morning and Advanced Micro Devices (NASDAQ:AMD) only barely recovering from negative movement earlier today.
Investors seeking out more of the latest stock market news will want to keep reading!
We’ve got all of the hottest stock market news worth knowing about on Wednesday! That includes what’s going on with shares of Bionano Genomics (NASDAQ:BNGO), Enphase Energy (NASDAQ:ENPH) and Rumble (NASDAQ:RUM) stock today. You can catch up on all of that at the following links!
More Wednesday Stock Market News
- What Is Going on With Bionano Genomics (BNGO) Stock Today?
- Enphase Energy (ENPH) Stock Pops on Strong Q3 Earnings
- How Elon Musk Could Take Rumble (RUM) Stock to the Next Level
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
