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US STOCKS MIXED IN EARLY; CHIPS DIM, BUT REGIONAL BANKS A BRIGHT SPOT
Wall Street's main indexes are mixed early on Tuesday as investors take stock of a series of delayed economic data to gauge the health of the U.S. economy, while Alphabet gains after a report said Meta was in talks to spend billions on the Google parent's chips.
Bucking broader declines, Alphabet GOOGL.O is higher after a report said Facebook parent Meta Platforms META.O was in discussions to use Google's AI chips in its data centers from 2027 and rent chips from Google Cloud by next year.
Broadcom AVGO.O, which helps Alphabet make its AI chips, is rising, while Nvidia NVDA.O and Advanced Micro Devices AMD.O, which currently dominate the AI chips sector, are under pressure.
With this, Tech .SPLRCT is the weakest S&P 500 .SPX sector and chip stocks as a group are lower. The SOX index .SOX is down more than 2.5%.
Communication Services .SPLRCL and Healthcare .SPXHC are showing strength. Small caps .RUT, Transports .DJT, and Regional Banks .KRX are among other outperforming groups. In fact, the KRX is rallying more than 2%.
Meanwhile, traders continue to eye the main indexes as each flirts with its 50-day moving average in early trade.
Here is a snapshot of where markets stood around 10:11 a.m. ET:
(Terence Gabriel)
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