U.S. stocks fell at the start of Wednesday’s session after Microsoft’s lackluster earnings guidance (MSFTMore) dampened the outlook for tech stocks and weighed on the broader market.
S&P 500 (^GSPC) plunged 1.2% on opening, while the Dow Jones Industrial Average (^ DJI) loses 250 points, or about 0.8%. Technology-focused Nasdaq Composite (^IXIC) fell 1.9%.
Investors are Tesla (TSLA), IBM (IBM), and AT&T (T.) are all in the queue for Wednesday.
Microsoft shares fell 3.5% Wednesday morning, offsetting optimism around after the company announced a weak earnings outlook and last quarter’s results showed a slowdown in its cloud business. made more profit than expectedThe results come after the megacap giant laid off about 10,000 workers last week, citing a push towards AI.
Apart from this, Microsoft A global network outage was occurring On Wednesday morning, its cloud platform Azure will offer services like Teams and Outlook.
Wednesday, Texas Instruments (TXN) shares fell 1.6% in early trading after the chip maker. Worst sales decline since 2020, revenue fell from $4.53 billion to $4.17 billion. Other semiconductors also fell following the result.
CEO Rich Templeton said in the company’s earnings report:
Fox stock (fox) and News Corp. (NWSA) rose 2% and 6.7% respectively after media mogul Rupert Murdoch. Plans for proposed Fox-News Corp merger scrappedThe company was spun off ten years ago.
apart from mixed finish on tuesday And despite some downsides this year, the stock trended higher in the first few weeks of January. The Nasdaq Composite is up about 8% to date, with gains particularly concentrated across tech stocks.
“So far, the January 2023 price action is eerily similar to July 2022, when risk assets rose and interest rates fell. because it accepts For further Fed rate hikes,” Gargi Chaudhuri, head of investment strategy for iShares at BlackRock, said in a report. “When the Fed did well and raised its policy rate by 75 basis points in September, that argument faded and the price move reversed.”
“To date, many investors once again believe that inflation has been largely defeated and that weaker growth will not only obviate the need for further rate hikes, but will even allow the Fed to cut rates by the end of the year. I’m sure,” she added. .
Despite Federal Reserve policymakers sending out the message that interest rates will rise above 5%, the market is poised for a 25 basis point drop at its next meeting, Jan. 31 to Feb. 31. , we factor in a cut in the final interest rate. 1.
of CME FedWatch ToolIt is a tool that measures investors’ expectations of interest rates and US monetary policy.
Alexandra Semenova is a reporter at Yahoo Finance. follow her on her twitter @alexandraandnyc
Click here to check out the latest trending stock tickers on the Yahoo Finance platform.
Click here for the latest stock market news and in-depth analysis, including stock-moving events
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance App apple Also android
Follow Yahoo Finance twitter, Facebook, Instagram, flip board, LinkedInWhen Youtube