LIVE MARKETS-Nasdaq falls 1% early; chips down, megacap earnings ahead

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NASDAQ FALLS 1% EARLY; CHIPS DOWN, MEGACAP EARNINGS AHEAD

The Nasdaq .IXIC is down more than 1% in early trading on Tuesday, adding to recent declines, while the S&P 500 .SPX is slightly lower, with chipmaker shares leading declines.

An index of semiconductors .SOX is down nearly 6% in early trading, while the Nasdaq is now down roughly 9% from its record closing high.

The technology sector .SPLRCT is leading declines in the S&P 500. Investors are bracing for earnings from more U.S. megacap companies this week including Microsoft MSFT.O. Worries about AI spending by hyperscalers have kept investors on edge.

Also due to report this week are Amazon.com AMZN.O, Meta META.O and Apple AAPL.O.

Also keeping investors cautious is a decision from the Federal Reserve this week. The Fed concludes its two-day policy meeting on Wednesday, and the majority of traders are projecting the central bank will leave rates unchanged despite sharply higher oil prices.

Here is the early market snapshot:

(Caroline Valetkevitch)

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