DJIA down 125.71 points (Il Sole 24 Ore Radiocor) - New York, 18 Jul - US shares were trading lower at midday, reversing earlier gains as investors digested more earnings and data and tech stocks failed to come back from yesterday's rout.

Investors have been selling AI-related stock as expectations rise the Federal Reserve will start cutting interest rates soon, benefitting the whole broader market and not just the big tech names that have driven gains this year.

The CME Group's FedWatch Tool is currently pricing in a chance of 98% the Fed will cut rates at its September meeting following recent encouraging inflation and jobs data.

Today's jobless claims reading came in stronger than expected providing more evidence the labour market is softening.

Meanwhile in Europe, the ECB left rates unchanged.

The earnings season meanwhile marches on with Blackstone and Netflix among companies reporting results.

Also on the data front, the leading economic index (LEI) for the US was down 0.2% month on month in June, while expectations were for a 0.3% decline.

At 1625 GMT, the Dow Jones was losing 125.71 points, or 0.31%, at 41,072.37 points.

The S&P 500 was 29.19 points, or 0.52%, lower at 5,559.34 points.

The Nasdaq was down 173.27 points, or 0.98%, at 17,820.06 points.

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(RADIOCOR) 18-07-24 17:32:48 (0598) 5 NNNN