Stock indices were mixed on Wall Street in Wednesday afternoon trading, with investors considering the latest earnings reports, including weak results from several big tech companies.
The S&P 500 is down 0.4% as of 2:24 pm ET. The Dow Jones Industrial Average temporarily rose more than 335 points, but the gain narrowed to 42 points (0.1%) to 31,874. Small company stocks far outperform the overall market. The Russell 2000 was up 1.4% on him.
Tech stocks Nasdaq fell 1.7%. It has been weighed down by several stocks with huge valuations that could have a big impact on market indices.
Google’s parent company, Alphabet, fell 8.3% after a disappointing third-quarter result due to weak advertising sales. Weak ad sales threaten other tech and telecom companies. Music streaming service Spotify fell 12.2% after reporting a larger-than-expected third-quarter loss on Wall Street.
Microsoft fell 6.3% after reporting unexpected growth for the cloud computing company, but profits fell alongside PC sales. Chip maker Texas Instruments fell 2.7% after giving investors disappointing forecasts for the quarter.
Visa rose 4.5% after reporting strong earnings and raising its dividend. Norfolk Southern climbed 3.7% after reporting a surge in profits due to higher shipping charges.
Outside of revenue, Mobileye Global, Intel’s self-driving division, rose 29.7% on its market debut.
Several other big companies are due to report earnings this week. Facebook’s parent company Meta will report earnings late Wednesday, and Apple will report earnings on Thursday.
Internet retail giant Amazon also reported its results on Thursday, along with industry pioneers Caterpillar and McDonald’s.
Yields on long-term government bonds continued to fall from multi-year highs. These interest rate increases have caused mortgage rates to rise sharply this year.
Yields on 10-year government bonds fell to 4.02% from 4.10% late Tuesday. The 2-year yield fell from 4.48% he to 4.43%.
Investors have been mostly focused on earnings this week, but some economic updates are on the rise as they try to get a better sense of how inflation is affecting businesses, consumers and the Fed’s rate hike plans. awaiting information.
The government is due to release its first estimates of gross domestic product for the third quarter on Thursday. The US economy has already slowed and actually contracted in the first half of this year. On Friday, the government will also release more data on personal income, consumption and spending.
The latest economic data are being watched closely for signs of a slowdown as Wall Street tries to determine if and when the Fed will ease rate hikes. The central bank is expected to raise interest rates by another three-quarters of a percentage point at its scheduled meeting in November. However, traders are becoming more confident that December will settle for a more modest rise of 0.50 percentage points, according to CME Group.
Investors worry that the Fed could raise rates too much and slow the economy too much, triggering a recession.
Joe McDonald and Matt Ott contributed to this report.
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