In a session marked by volatility, the main stock market indices of Wall Street register falls this Tuesday, on the eve of the closing of the monetary policy meeting of the Federal Reserve, as investors evaluate the latest batch of earnings reports and analyze more economic data.
Nvidia is one of the giants of the technology sector and one of the main burdens of the day, suffering a drop of 3.7%. This follows news that restrictions imposed by the United States could force the chip designer to cancel orders worth billions of dollars from China.
Other growth heavyweights, such as Meta Platforms and Microsoftare also experiencing declines, with drops of around 0.4% to 1%.
Regarding the S&P 500 sectors, six of the eleven show lossesand the information technology sector leads the declines.
The Dow Jones Industrial Average loses 0.7%. The S&P 500 rose 0.6%, while the Nasdaq Composite lost 0.1%.
US equities chains its third consecutive month in negative territorywith the S&P 500 and Nasdaq on track to record their worst October since 2018.
Wall Street: earnings reports
In relation to earnings reports, heavy machinery manufacturer Caterpillar experiences a drop of 6.3% as the company’s dealer inventories increase and the order book shrinks, indicating that demand for equipment is beginning to slow down. Drugmaker Amgen is also hit, down 4.3% after reporting its third quarter report.
Pfizer shares fell 1.5% after the drugmaker reported its first quarterly loss since 2019.
In terms of economic data, the Chicago PMI index stands at 44 versus expectations of 45, while a separate reading shows US labor costs rising solidly in the third quarter.
The Fed begins a two-day monetary policy meeting on Tuesday. The central bank is widely expected to keep interest rates steady, according to CME Group’s FedWatch tool.
In addition to the earnings reports, a series of labor market data will be released throughout the week, culminating with Friday’s nonfarm payrolls report, for further clues about the strength of the U.S. economy.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
