By Yasin Ebrahim

Investing.com — The S&P 500 stumbled Wednesday, as an Intel-led dent in tech stocks and ongoing worries about an economic stumble on the horizon amid rampant inflation weighed on sentiment.

It fell 1.1%.

Intel (NASDAQ:) fell more than 5% after the chipmaker touted an “incrementally more cautious” view on its near-term outlook amid pressure from falling demand as clients cut inventory levels.

These downbeat comments triggered an avalanche of Wall Street analysts downgrading stocks and lowering sentiment for chip stocks which dropped nearly 3% by midday.

In the meantime, the tech sector in general was being affected by an increase in Treasury yields. The peak reached 3%. This is despite ongoing bets on the Federal Reserve’s willingness to keep the pace with rate increases to address inflation, just as there are cracks in the economy.

After Fed rate increases, mortgage demand fell to its lowest point in 22 years in May.

But Twitter (NYSE) has risen about 1% against the trend, as Musk demanded information on fake accounts and spam accounts. Musk threatened to renegotiate the deal earlier this week after claiming that the company was unwilling to give the information had “materially” violated the terms of the agreement.   

Inflation pressures are continuing to rise, further evidence was provided by earnings.

Campbell Soup (NYSE) increased its full-year profit guidance, after reporting that both its top and bottom lines beat it. But it indicated it still expects its core inflation outlook to be higher than its projections. The shares rose by about 2%.

Robinhood Inc (NASDAQ:), down 5%, added to the losses from a day earlier after Securities and Exchange Commission Chair Gary Gensler unveiled a plan to change how retail stock trades are executed that many fear could dent the trading platform’s growth.

Gensler suggested that traders would be able to compete for trades made by retail investors under the plan.