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Thursday, February 2, 2023

Wall Street falls dragged by the Nasdaq after the failures of Microsoft

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The Dow Jones industrial average lost 1.3% to 33,286.66 units, while the S&P 500 index also fell 1.1% to 3,970.90 units. The Nasdaq Composite Index fell 2.2% to 11,174.12 units.

Almost all of the big tech companies are posting daily declines, led by alphabet (Google parent company) that loses up to -4%, Manzana with -1.8% and Amazon with -1.6%.

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In the case of Microsoft suffered a significant drop in the early hours of the day after its cloud service stopped working due to a network drop. The Teams and Outlook applications, among others, stopped working for a few hours. The Azure status page showed that services were affected in the Americas, Europe, Asia Pacific, the Middle East, and Africa. Only services in China and its platform for governments were not affected.

The papers more sensitive to economic activityNevertheless, have enjoyed a rebound in January after a beating last year, with investors now focused on corporate results to gauge the impact of the US Federal Reserve’s rate hikes.

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Meanwhile, the titles of Boeinga heavyweight in the Dow Jones, they were down 1.3% following a report that the planemaker’s losses widened into 2022 and the company missed fourth-quarter sales estimates.

“The environment might look attractive because some of these cloud companies, like Salesforce, are down a lot, but investors are still skeptical because we’re heading into weaker economic news,” he said. robert pavlika senior portfolio manager at Dakota Wealth in dialogue with Reuters.

AT&T Inc For his part, he predicted a annual profit below Wall Street expectationsanticipating a slowdown in mobile phone customer growth amid increasing competition.

The signs of a recession The economic downturn is prompting US businesses to streamline operations and issue cautious forecasts as they anticipate a drop in demand from customers cutting spending. AT&T said that expected a 2023 profit of between $2.35 and $2.45 per share, versus estimates of analysts at $2.56 per shareaccording to Refinitiv data.

By last, Freeport-McMoRan Inc reported a 37% drop in their utilities Q4 as recession fears, interest rate hikes and COVID lockdowns in China took a toll on copper prices.

A The overwhelming majority of traders expect the Fed to raise interest rates by another 25 basis points. at their meeting next week. In addition, the market expects the terminal rate to reach a maximum of 4.9% in June.

Source: Ambito

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