Stock market today: Tech drags stocks lower as rally hits pause

Stock market today: Tech drags stocks lower as rally hits pause

US stocks tipped lower on Wednesday as investors tried to read the rate-cut runes and weighed a fresh batch of earnings reports for insight into the chance of a Corporate America-spurred revival.

The Dow Jones Industrial Average (^DJI) fell 0.1%, or about 50 points, while the S&P 500 (^GSPC) ticked down 0.4%. The tech-heavy Nasdaq Composite (^IXIC) edged down about 0.6%.

While stocks have notched a string of gains in recent days, the rally lost some steam as Federal Reserve policymaker Neel Kashkari signaled that rates are likely to stay at historic highs for a while. The Minneapolis Fed chief’s comment that a hike isn’t off the table either knocked hopes for an earlier easing in policy that had been buoyed by other Fed speakers. Fed officials Lisa Cook and Philip Jefferson are slated to speak Wednesday.

Uncertainty about corporate earnings also gave some investors pause as the season entered its final stretch. While techs have mainly delivered on high expectations, the focus is now on whether other sectors can match up.

On Wednesday’s docket, Uber’s (UBER) forecast for a key bookings metric missed the mark, dragging its shares down almost 7%. Shopify (SHOP) shares plunged as much as 19% after the e-commerce platform forecast its slowest quarterly revenue growth in two years.

After Disney (DIS) beat on earnings but still disappointed Wall Street, results from Fox (FOXA) are poised to claim attention. In after hours, quarterly updates from AMC Entertainment (AMC) and Robinhood (HOOD) will be watched for signs of a meme stock-like surge.

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  • Tesla slides after report of DOJ probe

    Tesla (TSLA) stock slipped nearly 3% on Wednesday morning after Reuters reported US prosecutors are investigating whether Tesla committed securities or wire fraud by “misleading investors and consumers about its electric vehicles’ self-driving capabilities.”

    Reuters reported the Justice Department is specifically looking into whether or not CEO Elon Musk and others misled drivers by suggesting cars using Tesla Full Sef-Driving system could drive themselves without any potential need for human intervention.

  • Stock market today: Tech drags stocks lower as rally hits pause

    Stocks open lower, yields move higher

    US stocks tipped lower on Wednesday as investors tried to read the rate-cut runes and weighed a fresh batch of earnings reports for insight into the chance of a Corporate America-spurred revival.

    The Dow Jones Industrial Average (^DJI) fell 0.1%, or about 50 points, while the S&P 500 (^GSPC) ticked down 0.4%. The tech-heavy Nasdaq Composite (^IXIC) dropped about 0.6%.

    Meanwhile, the 10-year Treasury yield (^TNX) edged higher, coming off a three-week low, to hit 4.49%.

  • Reddit’s quarter, digested

    Lots to digest from Reddit’s (RDDT) quarter last night. But the 13% pop higher in the pre-market makes sense to me.

    The company hit adjusted operating profitability for the first time. Capex is crazy low versus rivals like Meta (META). International sales are accelerating. Ad market commentary was favorable. And the company is making important changes to how the platform runs, which in part is helping its Google rankings.

    I would add a hat tip to Reddit’s exec team for starting its earnings call with questions from its community. Maybe this is something Boeing’s (BA) management team should be doing…

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