S&P 500 slipped as Big Tech Microsoft and Alphabet squeeze the market

The Nasdaq and S&P 500 fell on Wednesday as traders assessed disappointing earnings from technology giants Microsoft and Alphabet.

The Nasdaq fell 1.9%. The S&P 500 lost 0.6%. The Dow Jones Industrial Average of 30 stocks traded 14 points higher, up 0.1%.

Utilities and Real Estate traded slightly negatively as a sector late in the day. Join the discretion of consumers, communications and technology services in the red.

Earlier in the day, the Dow rose more than 300 points as Visa supported the index thanks to solid earnings. The S&P 500 was also positive.

Shares of Google subsidiary Alphabet fell 8% after the tech giant Missed expectations on the final result. Alphabet also reported a drop in YouTube ad revenue, which prompted investors to discuss the prospects for other tech companies that rely on ad spend.

Meanwhile, Microsoft stock fell about 7% after that The tech giant reports weaker-than-expected cloud revenue In its latest quarterly results, though, it beat earnings and revenue estimates. The company also issued guidance on current quarter revenue that did not live up to expectations.

Keith Buchanan, portfolio manager at GLOBALT Investment, said volatility in major indexes reflects a “tug of war” between US companies and the Federal Reserve that has left investors trying to balance what companies have to offer and what that means for future interest rate hikes. . He said the first big tech reports had a special impact because it’s an industry to which many investors are exposed.

“The daily move for today is kind of a microcosm of what we have been feeling as investors for the past several weeks,” Buchanan said. “Optimism is built almost entirely on a pessimistic outlook. Optimism around the Fed pivot only occurs in a scenario where things deteriorate faster, from a macroeconomic point of view.”

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“The fluctuations are here, and they’ve been around for a while, and I think they’re probably going to stay,” he added. “Not on a daily basis, week to week, but on a daily basis, just because of the situation that the investors are in now.”

In other earnings news, shares of Harley-Davidson rose 11.9% after the motorcycle maker reported beating expectations before the bell. Boeing lost 8.9% after the aircraft maker Reported a quarterly loss and missed revenue forecast.

Shares tried to rally earlier in the day, as traders tried to shake off quarterly results from Microsoft and Alphabet. The S&P 500 moved positively earlier and the Dow rose more than 300 points.

Any of the major indices that close negatively will cut their three-day winning streak.

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