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US markets end lower on Tuesday

10 May 2023 Evaluate

The US markets ended lower on Tuesday amid ongoing concerns about the outlook for the global economy following disappointing Chinese trade data. Also, traders preferred to move out with relatively risky assets ahead of the release of key inflation data in the coming days. The reports on consumer and producer price inflation, which are due to be released on Wednesday and Thursday, respectively, could have a significant impact on the outlook for interest rates. Ahead of the data, CME Group's FedWatch Tool is currently indicating an 76.5 percent chance the Federal Reserve will leave interest rates unchanged at its next meeting in June. Fed Chair Jerome Powell said following last week's rate hike that the central bank would take a data-dependent approach to future monetary policy decisions.

Some concerns also came about the debt ceiling ahead of a meeting between President Joe Biden and House Speaker Kevin McCarthy, R-Calif. McCarthy has called for any deal on raising the debt ceiling to include spending cuts and told NBC News earlier today he is not in favor of a short-term fix. Besides, lack of major U.S. economic data keeping some traders on the sidelines. On the sectoral front, Tobacco stocks showed a significant move to the downside on the day, dragging the NYSE Arca Tobacco Index down by 2.3 percent to its lowest closing level in well over five months. Considerable weakness was also visible among semiconductor stocks, as reflected by the 1.9 percent slump by the Philadelphia Semiconductor Index. Chipmaker Skyworks Solutions (SWKS) posted a steep loss after reporting better than expected fiscal second quarter results but providing disappointing guidance for the current quarter.

Dow Jones Industrial Average fell 56.88 points or 0.17 percent to 33,561.81, Nasdaq lost 77.36 points or 0.63 percent to 12,179.55 and S&P 500 was down by 18.95 points or 0.46 percent to 4,119.17.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

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