U.S. stocks closed lower on Tuesday, marking the last day of April with a downward trend fueled by disappointing earnings reports and economic data. Investors were also treading cautiously ahead of the Federal Reserve’s upcoming monetary policy decision.
In mid-day trade, the Nasdaq Composite slipped 1.05% to 15,814.72 points, the S&P 500 retreated 1.01% to 5,064.47 points, and the Dow fell 1.02% to 37,992.95 points. All 11 S&P sectors were in the red, reflecting a broad decline in the market.
GE HealthCare was among the top percentage losers on both the Nasdaq and the S&P 500, with its stock slumping due to a decrease in product volumes impacting its financial performance. McDonald’s also faced pressure after reporting a rare miss on quarterly global comparable sales growth, with CEO Chris Kempczinski noting a shift in consumer spending habits.
Despite exceeding quarterly organic sales growth expectations, Coca-Cola saw its stock marginally lower as impairment charges affected its operating income and margin. All eyes were on Amazon.com’s earnings report after the closing bell, adding to the market’s anticipation.
Economic data also played a role in dampening investor sentiment, with reports showing a rise in the employment cost index for Q1 2024 and a decline in business activity in the Chicago area. Consumer confidence also deteriorated for the third consecutive month in April, reflecting a challenging economic environment.
The negative data further diminished expectations of rate cuts by the Federal Reserve, highlighting the shift in market sentiment. April is on track to be the first negative month for U.S. stocks since October 2023, with major indices posting monthly losses.
In the fixed-income markets, Treasury yields rose across the curve, with the 30-year yield up 4 basis points, the 10-year yield up 6 basis points, and the 2-year yield up 3 basis points. Stock movers not related to earnings included Warner Bros. Discovery and Walmart, both experiencing declines for various reasons.
Overall, the market’s performance on the last day of April reflected a mix of earnings disappointments, economic data concerns, and anticipation for the Federal Reserve’s upcoming decision, shaping the narrative for investors moving forward.
