(For a Reuters live blog on U.S., UK and European stock
markets, click or type LIVE/ in a news window.)
* Micron tempers forecast as demand weakness deepens
* Novavax falls 31% after cutting revenue view by half
* Futures down: Dow 0.01%, S&P 0.23%, Nasdaq 0.62%
Aug 9 (Reuters) - Wall Street was set to open lower on
Tuesday after a dismal forecast from Micron Technology dragged
chip stocks lower, while investors remained cautious ahead of
inflation data that will feed into the U.S. Federal Reserve's
A high inflation print on Wednesday, following last week's
strong jobs numbers, will likely push the Fed to continue with
jumbo rate hikes and weigh on a recent recovery in stocks.
Traders are expecting a 71.5% chance of the Fed raising
interest rates by 75 basis points in September, its third such
Growth and technology stocks, whose valuations are sensitive
to rising bond yields, slipped as U.S. Treasury yields climbed,
with Alphabet Inc and Apple Inc down 0.6%
Micron Technology Inc fell 4.1% as the memory-chip
maker cut fourth-quarter revenue forecast and warned of a
negative free cash flow in the following three months as demand
for chips used in personal computers and smartphones drop.
Peers Nvidia and Advanced Micro Devices
fell 2.8% and 2.0%, respectively, extending the previous
session's sharp declines after a revenue warning from Nvidia.
The Philadelphia Semiconductor Index is down 23.9% so
far this year, lagging the broader tech-heavy Nasdaq index.
"Markets are still treating these things as companies
specific. If you get enough similar warnings, investors will
start to treat it as sector specific and if that goes on further
then it will become market specific," said Michael Shaoul, chief
executive officer at Marketfield.
Shaoul said trading volumes remained lower due to summer and
"it really doesn't take a lot of capital to push over yields or
Despite a choppy recovery since mid-June, the benchmark
index is down 13% this year after hitting a record high
in early January as surging prices, hawkish central banks,
geopolitical tensions weigh on sentiment.
Stronger-than-expected earnings from corporate America have
been a positive, with 77.5% of S&P 500 companies beating
earnings estimates, according to the Refinitiv data as of
At 08:44 a.m. ET, Dow e-minis were down 2 points,
or 0.01%, S&P 500 e-minis were down 9.5 points, or
0.23%, and Nasdaq 100 e-minis were down 81.5 points, or
Novavax slumped 31.3% after the drugmaker halved
its annual revenue forecast as it does not expect further sales
of its COVID-19 shot this year in the United States in the face
of a global supply glut and soft demand.
(Reporting by Bansari Mayur Kamdar and Aniruddha Ghosh in
Bengaluru; Editing by Saumyadeb Chakrabarty and Arun Koyyur)