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Trade choppy on Wall Street as Pelosi heads to Taiwan

  • Speaker Nancy Pelosi visits Taipei
  • Caterpillar drops after missing sales estimates
  • Uber jumps after reporting positive cash flow
  • Indices: S&P 500 -0.13%, Nasdaq +0.29%, Dow -0.70%

Aug 2 (Reuters) – Wall Street saw choppy trading on Tuesday as geopolitical tensions erupted after U.S. House of Representatives Speaker Nancy Pelosi visited Taiwan.

Pelosi said his trip showed American solidarity with the self-governing island claimed by China, but China has condemned the first such visit in 25 years as a threat to peace and stability. Read more

Shares of chipmakers with heavy exposure to China were mostly trading higher, rebounding from early declines. Advanced Micro Devices (AMD.O) rose about 3% ahead of its quarterly report after the bell.

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The Caterpillar Industrial Barometer (CAT.N) fell nearly 5% after warning of a bigger drop in demand for its excavators in housing crisis-hit China, further hurting the industrial barometer struggling with market disruptions Supply Chain.

Financial markets were also shaken by the war in Ukraine, soaring inflation and tighter financial conditions.

U.S. job creations in June saw the biggest drop in just over two years as demand for workers fell in the retail and wholesale sectors. Overall, the labor market remained tight. Read more

After the Fed hiked interest rates 75 basis points in July, investors wondered if the central bank’s biggest hikes were behind it.

“The market must be really comfortable having fully priced in all of the Fed’s rate hikes, and I think that’s still an open question,” Rob Haworth, senior investment strategist at US Bank Wealth Management, told Reuters. Seattle. “The supply challenges and constraints aren’t necessarily over. They aren’t over yet and are gone.”

US defense company stocks Raytheon Technologies Corp (RTX.N)Lockheed Martin Corporation (LMT.N)Northrop Grumman Corporation (CNP.N) and L3Harris Technologies Inc. (LHX.N) increased between 1% and 3%. The United States is Taiwan’s main supporter and arms supplier. Read more

In afternoon trading, the S&P 500 was down 0.13% at 4,113.41 points.

The Nasdaq gained 0.29% to 12,404.69 points, while the Dow Jones Industrial Average fell 0.70% to 32,569.39 points.

The CBOE Volatility Index (.VIX), also known as the Wall Street Fear Gauge, fell from the day’s high of 24.68 points. The Philadelphia SE Semiconductor Index (.SOX) rebounded from its losses to rebound around 0.6%.

A largely upbeat second-quarter reporting season has supported markets recently, with the benchmark S&P 500 (.SPX)up about 12% from lows reached in mid-June.

Uber Technologies Inc. (UBER.N) jumped 18% after the ride-hailing company first reported positive quarterly cash flow and forecast upbeat third-quarter operating profit. Read more

Tesla Inc. (TSLA.O)gained 2.7% after Citigroup raised its price target on the electric carmaker’s stock.

Pinterest Inc. (PINS.N) jumped nearly 13% after activist investor Elliott Investment Management became the biggest shareholder in the digital bulletin board company. Read more

Through the US stock market (.AD.US)rising stocks outnumbered falling stocks by a ratio of 1.0 to one.

The S&P 500 posted 2 new highs and 30 new lows; the Nasdaq recorded 37 new highs and 61 new lows.

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Reporting by Aniruddha Ghosh and Devik Jain in Bengaluru; Editing by Anil D’Silva, Arun Koyyur and David Gregorio

Our standards: The Thomson Reuters Trust Principles.

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