US Markets
Wednesday, October 25th, 2023 1:57 pm EDT
Key Points
- The Nasdaq Composite experienced a decline, primarily due to a pullback in shares of Alphabet, leading to a broader downturn in the tech stock sector. The Nasdaq lost nearly 1%, and the S&P 500 also saw a 0.5% decline, while the Dow Jones Industrial Average slipped by 0.2%.
- Tech stocks were under pressure following Alphabet’s disappointing third-quarter results, where its cloud business missed analyst estimates, despite strong revenue growth and earnings performance. Shares of other tech giants like Apple and Amazon also saw declines of 1% and 2.5%, respectively. Microsoft was an exception, with shares rising by 3.9% after beating Wall Street’s estimates in its first-quarter results.
- In addition to corporate earnings being a focus for investors, there were concerns about rising Treasury yields, with the benchmark 10-year Treasury yield increasing by 6 basis points to 4.897%. The rapid rise in yields raised worries about its potential impact on the stock market.
The Nasdaq Composite experienced a decline on Wednesday, primarily driven by a pullback in shares of Alphabet, the parent company of Google, which led to a broader downturn in the technology sector. The tech-heavy Nasdaq index dropped by nearly 1%, while the S&P 500 saw a 0.5% decrease, and the Dow Jones Industrial Average slipped by 0.2%.
The tech stock sector faced pressure in the aftermath of Alphabet’s third-quarter financial results, which had been released a day earlier. Alphabet’s shares plummeted by over 8% due to its cloud business missing analysts’ estimates, despite strong revenue growth and earnings performance. Similarly, shares of tech giants like Apple and Amazon also experienced declines of 1% and 2.5%, respectively.
Microsoft, on the other hand, stood out as an exception among the declining tech stocks on that particular day, with its shares rising by 3.9% after reporting first-quarter results that exceeded Wall Street’s expectations.
While corporate earnings were the focus of investor attention during that week, there were also concerns regarding rising Treasury yields. The benchmark 10-year Treasury yield increased by 6 basis points to 4.897%, prompting some experts to express worries about the implications of rapidly rising yields on the stock market.
In other news, Boeing’s stock saw a 2.1% increase following the release of the company’s third-quarter results, which showed that revenue from commercial airplanes surpassed expectations. The aerospace company also maintained its free cash flow outlook for the year, despite reporting a larger-than-expected adjusted loss for the quarter.
Additionally, tech companies IBM and Meta were set to announce their quarterly results later in the day. As of that point, approximately 29% of S&P 500 companies had reported their third-quarter earnings, with 78% of those companies exceeding expectations.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/10/24/stock-market-today-live-updates.html
