Stock Market Today: Nasdaq Ekes Out a Win Despite Chip Stock Weakness
Semiconductor stocks lagged after media reports said the Biden administration is considering more restrictions on chip sales to China.


A lack of market-moving headlines and low trading volume ahead of next week's stock market holiday made for a choppy session Wednesday.
Semiconductor stocks retreated on reports the Biden administration is considering more restrictions on chip sales to China, but strength in mega-cap tech stocks helped mitigate any damage.
The three major equity benchmarks opened in negative territory Wednesday after a report in The Wall Street Journal suggested the U.S. is contemplating further restrictions on sales of artificial intelligence chips to China. This latest effort is reportedly part of a broader set of rules limiting sales of certain semiconductors to China the Biden administration issued last fall.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Chipmaker Nvidia (NVDA, -1.8%), which gets 20% of its revenue from China, was one of the day's biggest decliners, though it finished well off its intraday low.
Still, the tech-heavy Nasdaq Composite eked out a 0.3% gain to 13,591, as heavily weighted components Apple (AAPL, +0.6%) and Microsoft (MSFT, +0.4%) gained ground. Elsewhere, the S&P 500 (-0.04% at 4,376) and the Dow Jones Industrial Average (-0.2% at 33,852) suffered modest losses.
Powell talks rate hikes
Also in focus today was an appearance by Federal Reserve Chair Jerome Powell at the European Central Bank's annual forum in Sintra, Portugal. Powell said that a "strong majority" of U.S. central bankers were ready to issue two more quarter-point rate hikes this year, and that raising rates at back-to-back meetings is not "off the table."
The next Fed meeting kicks off in late July and futures traders are pricing in an 81.8% chance the central bank will lift rates by 25 basis points (0.25%), according to CME Group.
The best inflation-proof investments
Powell's warning on rate hikes came as the Fed chair said data continues to show strong growth, a tight labor market and stubbornly high inflation. "That tells us that although policy is restrictive, it may not be restrictive enough and it has not been restrictive for long enough," Powell said.
The next reading on inflation will come out Friday, with the May personal consumption and expenditures (PCE) index – a measure of consumer spending – slated for release at 8:30 am Eastern time. BofA Global Research expects the PCE index to rise 0.1% month-over-month and 3.8% year-over-year in May. That would be slower than the 0.4% and 4.4% increases seen in April, but still well above the Fed's 2% inflation target.
Investors have several options to counterbalance the effects of inflation on their portfolios. While gold may not be one of them, energy stocks and consumer staples stocks are two of the best inflation-proof investments. There's also the best dividend stocks for dependable dividend growth or, for those seeking a more diversified approach, the best dividend growth ETFs, all of which are solid defensive investments.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
13 Answers to Pressing Social Security Questions
From smart claiming strategies for couples to tips on maximizing your monthly check, we have advice that can help you.
-
Keep Tax Collectors at Bay with Muni Bond Funds
Municipal bonds can be good insurance against inflation — and interest is tax-free. But as with all investments, understanding risk is key.
-
Stock Market Today: S&P 500, Nasdaq Near New Highs
The S&P 500 hasn't hit a new high since February. It's been since December for the Nasdaq.
-
Stock Market Today: Stocks Struggle to Sustain Gains
Mixed messages from multiple sources continue to make for a messy market for investors, traders and speculators.
-
Stock Market Today: Stocks Chop as Chipmakers Decline
Several semiconductor stocks fell Friday on reports that the White House may consider revising license waivers for global chipmakers.
-
Stock Market Today: Stocks Rise on Less Deadly Concerns
Markets are forward-looking mechanisms, and it's good when price action shows there's a future to look forward to.
-
Stock Market Today: Stocks Stable as Inflation, Tariff Fears Ebb
Constructive trade war talks and improving consumer expectations are a healthy combination for financial markets.
-
Stock Market Today: Rally Extends on Good-Enough Expectations
Fiscal policy still has markets' attention, but taxes rather than tariffs and deficits rather than inflation are participants' primary focus.
-
Stock Market Today: Markets Move With Fresh Trade War Winds
The new uncertainty is the same as the old uncertainty, which is fine with investors, traders and speculators.
-
Stock Market Today: Stocks Chop as Judges Block Then Reinstate Tariffs
The Trump administration has asked for and received a stay in a case that seems headed for the Supreme Court.