On the other hand, the rise in long-term US Treasury bond yields also affected other large-cap securities.
On Wednesday, the indices Nasdaq and S&P 500 experience significant drops, while the technology giant Alphabet suffers a notable collapse. This is because its cloud division failed to meet revenue estimates, which raised concerns among investors. However, the Dow Jones is boosted by gains after the results of Microsoft and Boeing.
The Dow Jones Industrial Average thus shows an increase of 0.6%. On the other hand, the S&P 500 index fell 1.1%. The Nasdaq Composite experienced a sharp drop of 1.8%.
Google’s parent company, Alphabet, as reported Ambit, records a drop of 8.6%, reaching three-month lows, as its cloud business posted its lowest growth in at least 11 quarters. In contrast, Microsoft experienced an increase of 3.8%, reaching a three-month high, as it beat expectations for first-quarter results across all segments, including its cloud business.
Trade Nation’s David Morrison noted that investors are concerned that Alphabet is losing ground to Microsoft and Amazon in a sector seen as having huge growth potential due to the future adoption of generative artificial intelligence.
Wall Street: more obstacles on the horizon
On the other hand, the increase in the yield of long-term US Treasury bonds It also affected other large cap stocks. Meta Platformswhich would present its results report at the close of the session, experienced a drop of 3%, while Apple and Amazon.com fell 1.2% and 3.2%, respectively.
Of the 11 major S&P 500 sectors, eight are trading lower, communications services being the most affectedreaching almost one-month lows, while discretionary consumption and the real estate division were among the furthest behind.
Despite having cut its 737 delivery forecast for this year, Boeing managed to advance 1.9%, maintaining its goal of generating between $3 billion and $5 billion in free cash flow and exceeding third quarter revenue estimates.
Source: Ambito
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