STORY: U.S. stocks fell on Wednesday as shares of Amazon declined and chipmakers came under pressure after a bearish brokerage report on Intel, while higher oil prices deepened worries about inflation.
The Dow ended 0.81% lower, while the S&P 500 fell 1.08%, and the Nasdaq lost 0.73%.
Shares of Amazon fell about 1.5%, while Tesla gained 1.25%.
Shares of Intel dropped after Citi Research said the chipmaker could pre-announce weaker-than-expected earnings for the second quarter, dragging other chip stocks down as well.
David Bahnsen, chief investment officer at The Bahnsen Group, expects Intel’s challenges to stick around for a while.
"I think long-term investors in Intel are aware that this is going to be the case for a couple years. That before they can sort of realize the profits from the investment they're making into chip manufacturing, there's going to continue to be an outlay of costs that's going to impact margins."
Shares of Roku surged 9% after a report from Business Insider said employee chatter at the streaming hub company was swirling around a potential takeover bid from Netflix, shares of which rose more than 2%.