2023-10-25 18:39:25
Stocks fell on Wednesday following the latest set of results sparked concerns among investors over the economic outlook, adding to anxiety over painfully high interest rates, while benchmark US Treasury yields and the dollar fell. increase.
Shares of Alphabet weighed on indexes, falling 9.5% following the company reported a further slowdown in its cloud computing business, while shares of Microsoft rose by 2.9% following beating estimates.
The Dow Jones Industrial Average fell 0.27% to 33,051, the S&P 500 lost 1.36% to 4,189 and the Nasdaq Composite dropped 2.29% to 12,838.65.
“Tech company results got off to a mixed start last night, thanks to a focus on cloud computing, one of the industry’s biggest revenue drivers,” said Chris Beauchamp, chief market analyst at IG Group.
“Stocks have rallied somewhat over the past 24 hours, but it’s now up to Meta tonight and Amazon tomorrow to deliver the kind of good news that might give stocks reason to rally until the end of the month.
In Europe, the STOXX 600 was little changed, having come under pressure from a nearly 60% fall in Worldline shares following the French payments company cut its financial targets. In a busy day for banking results, Deutsche Bank was an exception, with an 8% increase in its shares.
Overnight, Asian stocks rose from 11-month lows as investors welcomed China’s approval of a 1 trillion yuan ($137 billion) sovereign bond issue. dollars) as a sign of recovery, although MSCI’s broadest index of Asia-Pacific stocks outside Japan was little changed.
The MSCI All-World Index fell 0.9%, heading for a third straight monthly decline in October, with a loss of 2.8%, largely due to rising U.S. Treasury yields.
HIGH RATES, MIXED DATA
U.S. Treasuries rebounded following the 10-year yield crossed the 5% mark on Monday. The 10-year note’s latest yield was 4.942%, up 10.2 basis points.
The interest rate on America’s most popular home loan hit its highest level since September 2000 (7.9%) last week, sending mortgage applications to their lowest level in 28 years, survey shows carried out on Wednesday.
Separately, new data on U.S. business output showed higher levels in October, with the manufacturing sector emerging from a five-month contraction thanks to an increase in new orders, and services activity easing slightly. accelerated once morest a backdrop of signs of easing inflationary pressures.
Citi strategists said the purchasing managers index was “another sign that a recession is not imminent.”
“We continue to believe the U.S. economy will enter a recession next year, but in the meantime, risks are balanced in favor of further Fed hikes, rather than cuts,” they wrote in a note Wednesday.
Several big names on Wall Street, including UBS strategists and investor Bill Ackman, have called for higher yields on longer-term Treasuries.
In the currency market, the dollar index gained 0.2%, while the yen remained stable once morest the dollar and the euro lost 0.2% on the day.
Oil prices fell on Wednesday as demand concerns over the bleak economic outlook in Europe offset fears of an escalation of war in the Middle East. U.S. crude rose 1.52% to $85.01 a barrel and Brent crude was at $89.68, up 1.83% on the day.
The United States and Russia are among countries calling for a pause in fighting between Israel and Hamas to allow aid to flow into the besieged Gaza Strip.
After hitting $1,997 an ounce last week, spot gold traded at $1,982, up 0.6%.
Bitcoin is up regarding 29% this month, largely on recent speculation that successful ETF applications from BlackRock and others have attracted capital to cryptocurrencies. Bitcoin last bought at $34,672.
The U.S. Securities and Exchange Commission declined to comment on the speculation.
1698260065
#Stocks #struggling #weak #earnings #worsen #interest #rate #problem #October #p.m
