Stocks on Wall Street opened lower on Wednesday, potentially ending a four-day winning streak for the S&P 500. The Dow Jones Industrial Average slipped 0.1%, while the Nasdaq composite was down 0.6%. The drop was driven by disappointing results from Uber Technologies, which reported a larger loss than expected for the latest quarter. However, Lyft saw a boost in its shares after surpassing profit and revenue expectations.
Despite the early losses, most companies have been reporting stronger profits for the start of the year than anticipated. This, coupled with renewed hopes for interest rate cuts, has helped the stock market recover from a rough April.
Oil prices continued to decline, and the Japanese yen weakened further against the dollar. Futures for the S&P 500 slid 0.2% before the bell, while futures for the Dow Jones Industrial Average ticked down less than 0.1%.
Investors are closely watching the Federal Reserve’s stance on interest rates, with Chair Jerome Powell indicating a preference for cutting rates rather than hiking them. This sentiment has helped stabilize the markets, despite concerns about inflation.
In global markets, European stocks were mostly higher, with Germany’s DAX rising 0.4% and the CAC 40 in Paris jumping 0.9%. In Asia, the Nikkei 225 in Tokyo lost 1.6%, with Nintendo Co. and Sony Corp. both seeing declines in their share prices.
Authorities in Japan are monitoring the yen’s weakness against the dollar, with concerns about its impact on the economy and prices. The Bank of Japan may need to respond with monetary policy if the exchange rate continues to fluctuate.
Overall, market players are keeping a close eye on developments in the global economy and how they may impact stock markets in the coming days.
