Title: Wall Street Drifts as U.S. Stocks Ease Following Sharp Swerves
In a day of mixed trading on Wall Street, U.S. stocks are drifting as momentum eases following some sharp swerves. The S&P 500 was 0.2% lower in late trading, with the Dow Jones Industrial Average down 90 points, or 0.2%, and the Nasdaq composite also 0.2% lower.
One standout performer was Tesla, which surged 10.8% higher after announcing plans to accelerate production of new, more affordable vehicles. Despite reporting a 55% drop in profit, investors were optimistic about the company’s growth prospects.
The focus is now on the “Magnificent Seven” stocks, with Tesla being the first to report results for the start of 2024. These stocks were major drivers of the U.S. stock market’s gains last year, and investors are eager to see if they can justify their high prices.
Meta Platforms, Alphabet, and Microsoft are set to report their latest results in the coming days, with hopes that profit growth will broaden beyond the Magnificent Seven to more types of companies. A strong earnings season could help restore market confidence, according to Solita Marcelli, chief investment officer Americas at UBS Global Wealth Management.
However, Treasury yields were higher in the bond market, putting pressure on stocks after the latest report on the U.S. economy came in hotter than forecast. The Federal Reserve’s earlier signals of interest rate cuts may be in jeopardy if the economy continues to show strength.
In company news, Norfolk Southern and Boeing saw declines in their stock prices despite reporting results, while Hasbro, Texas Instruments, and Boston Scientific were among the winners with strong earnings reports.
Stock markets abroad saw mixed results, with Japan’s Nikkei 225 jumping 2.4% as the yen fell against the U.S. dollar. European markets dipped modestly, adding to the uncertainty in global markets.
Overall, Wall Street remains in an awkward place as investors navigate economic data and corporate earnings reports to determine the future direction of U.S. stocks.
