Stock Market Today: Indexes Fall As Comeback Rally Loses Momentum
- US stocks fell as recession fears and disappointing earnings reports weighed on investors.
- Major indexes ticked lower, while bond yields rose.
- Super Micro Computer and Airbnb saw steep declines after missing on earnings.
US stocks slumped on Wednesday as the post-selloff rally in stocks lost steam and investors took in a handful of disappointing earnings reports. All three benchmark indexes finished lower, while bond yields ticked higher.
Stocks were up in early-morning trading after the Bank of Japan said it wouldn’t hike rates when markets were unstable, fueling more confidence in investors concerned about the carry trade unwind in global markets.
Equities, though, were ultimately dragged lower as investors continued to fret over recession risks and took in a slew of weak corporate earnings reports.
Super Micro Computer led declines in the tech sector after the chipmaker missed fourth-quarter earnings estimates. SCMI shares ended the day 20% lower, while Nvidia and Tesla fell 4%.
Airbnb saw a record plunge in its share price during Wednesday’s session after the company said in its earnings report that it was seeing a slowdown in demand from its US travelers. Shares ended Wednesday’s trading session 13% lower at $113.01 each.
The steep sell-off in equities has flashed a signal that the market is “technically oversold,” strategists at the financial firm iCapital said in a recent note.
“The economy is slowing, and the markets are clearly in the mood to price in a recession, which argues for defensive positioning for the core of the portfolio,” the firm said. “We are now mostly out of the buyback blackout window and the largest buyers may be in the market soon.”
Other forecasters, though, expect volatility to continue to ripple through the market.
“It shouldn’t be a huge shock to the savvy investor that knows the mechanics of the market and that the next correction is looming eventually,” Ken Mahoney, the CEO of Mahoney Asset Management, said in a statement.
Here’s where US indexes stood at the 4:00 p.m. closing bell on Wednesday:
Here’s what else is going on today:
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil climbed 3.06% to $75.44 a barrel. Brent crude, the international benchmark, ticked higher 0.23% to $78.51 a barrel.
- Gold traded relatively flat at $2,385.66 per ounce.
- The 10-year Treasury yield rose six basis points to 3.952%.
- Bitcoin dipped 3.4% at $54,740.