Mixed trends also prevailed in today’s session in Wall Street with the S&P 500 posting losses as major tech companies fell, awaiting second-quarter earnings after the market close. Of course, all eyes are on Washington as the Federal Reserve has already begun its two-day meeting.
O S&P 500 fell 0.5% to close at 5,436.44 units, while the Nasdaq closed with losses of 1.28%, at 17,147.42 units. The Dow Jones Index rose 203.40 points or 0.5% to 40,743.33 points.
Nvidia shares fell more than 7%, while Microsoft shares fell 0.7%. Other big names in the tech industry also fell, including Amazon, Netflix and Apple.
This is a big week for big tech earnings. Microsoft is expected to report results after Wall Street closes. Meta, Amazon and Apple will report results on Wednesday and Thursday.
So far, the earnings season has been strong. Of the more than 230 S&P 500 stocks that have reported results, 80% have beaten analysts’ expectations, according to FactSet data.
“We see the earnings growth rate picking up. When it comes to tech profitability, the bar is set very high. If there is any disappointment in AI investment, we will see stocks pull back. And we are ready for a market correction,” said Mona Mahajan, a strategist at Edward Jones.
At tomorrow’s Fed meeting, investors expect Chair Jerome Powell to signal the timing and number of interest rate cuts expected in the coming months. Traders are giving a 100% chance of a rate cut in September.
CrowdStrike shares have fallen about 10% since Delta Airlines hired attorney David Boyes to seek compensation for a technical issue caused by the cybersecurity company’s systems. CrowdStrike’s stock fell more than 40% in July, its worst monthly performance ever.
Merck fell 10% as a weakened outlook for the company overshadowed strong second-quarter results. Procter & Gamble lost 4.8% after revenue fell more than expected due to weak demand in China.