Chip rout drags down stocks as investors rotate out of tech
Sherwood News • • business
Key Points:
- May consumer prices rose 0.5% month-over-month, with core inflation increasing 0.2%, slightly below economists' expected 0.3%, indicating cooler-than-expected core inflation despite a 4.2% year-over-year rise driven by higher energy prices.
- Chewy reported Q1 results slightly beating earnings and revenue estimates, with net sales of $3.36 billion and adjusted EPS of $0.43; the company added nearly 200,000 net active customers but did not update its full-year guidance amid a challenging consumer environment.
- Super Micro Computer’s stock dropped nearly 9.5% after announcing plans to raise $7 billion through equity and equity-linked offerings to fund increased demand for its AI servers, with $39 billion in recent AI server orders from over 20 customers.
- DraftKings saw a 24% increase in consumer trading volume on its prediction markets in May, reaching $1.3 billion, driving a 10% stock rise; this growth comes as competition from Kalshi and Polymarket intensifies in the prediction market space.