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Crypto-related stocks drop as bitcoin falls
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Most chip stocks under pressure, Nvidia ( NVDA ) falls
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Futures down: Dow 0.18%, S&P 0.27%, Nasdaq 0.34%
(Updated at 7:00 a.m. ET/1100 GMT)
By Bansari Mayur Kamdar and Shashwat Chauhan
March 19 (Reuters) -
Futures tracking Wall Street's main stock indexes were
marginally lower on Tuesday as investors refrained from making
big bets ahead of the start of the Federal Reserve's March
policy meeting.
All three major stock indexes finished higher in the
previous session, with the Nasdaq bouncing back from two
successive small weekly losses as growth stocks such as Alphabet
and Tesla boosted the tech-heavy index.
Most megacap growth stocks were under pressure in premarket
trading.
Investor darling Nvidia ( NVDA ) weakened 1.2% after the
company unveiled the Blackwell B200, an AI chip it says is up to
30 times faster than its previous chip. Some investors suggested
the news was priced into the high-flying stock.
Fellow chipmaker AMD dipped 2.5%, while
semiconductor firms such as Marvell Technology ( MRVL ), Intel ( INTC )
and Broadcom ( AVGO ) also fell between 0.3% and 2.8%.
Super Micro Computer ( SMCI ), which makes AI-optimized
servers with Nvidia's ( NVDA ) chips, dropped 6.2% after the company
filed for a stock shelf offering of up to 2 million shares.
At 7:00 a.m. ET, Dow e-minis were down 72
points, or 0.18%, S&P 500 e-minis were down 14 points,
or 0.27%, and Nasdaq 100 e-minis were down 61.75 points,
or 0.34%.
All eyes are on U.S. central bankers who are expected to
hold rates steady at the end of their two-day meeting on
Wednesday.
But, investors are concerned that their new economic
projections may be a wild card, potentially signaling fewer
interest rate cuts and a later start to the policy easing cycle.
Robust inflation data has pushed traders to pull back bets
of the first rate cut coming in June to 55.2% from 71% at the
start of last week, according to the CME FedWatch Tool.
"With price rises still steamier than expected, signs of a
more watchful, wary Fed are likely to emerge from this meeting,"
said Susannah Streeter, head of money and markets, Hargreaves
Lansdown.
"However, the wave of exuberance is continuing among
investors still charged with enthusiasm about the seemingly
infinite possibilities that artificial intelligence will bring
to the corporate world."
Among other movers, crypto-exchange operator Coinbase Global ( COIN )
and miners Riot Platforms ( RIOT ) and Marathon Digital
Holdings ( MARA ) shed between 4.1% and 6.0%, tracking the sharp
slide in bitcoin.
Spire Global ( SPIR ) jumped 18.1% after the company
announced a collaboration with Nvidia ( NVDA ) for AI-driven weather
prediction.