Stocks fell on Wall Street Wednesday as weakness in technology companies continues to drag on the market. The S&P 500 slipped 0.3% in morning trading. The tech-heavy Nasdaq gave up 0.6% and the Dow Jones Industrial Average slipped 120 points, or 0.3%. Palo Alto Networks was a big loser and a particularly heavy weight on the technology sector. The network security company lost a quarter of its value after giving forecasts for future billings that came in well below what analysts were looking for. Its rival, Fortinet, slumped 7.3%.
Quick Read
- Wall Street experienced a downturn, with the S&P 500, Nasdaq, and Dow Jones all seeing declines, attributed largely to the underperformance of technology companies.
- Palo Alto Networks suffered a significant drop, losing 25% of its value due to disappointing future billing forecasts, impacting the tech sector overall. Fortinet also saw a decline of 7.3%.
- Amazon saw a 1.6% increase after the announcement of its inclusion in the Dow, while Walgreens Boots Alliance, which is exiting the Dow, fell by 3.4%.
- Bond yields remained stable, with the 10-year Treasury yield slightly decreasing.
- European markets showed mostly positive trends, while Asian markets had mixed results.
- Corporate earnings are a major focus, with Nvidia’s upcoming report generating significant interest, especially around artificial intelligence.
- Keysight Technologies and Garmin experienced notable stock movements following their earnings reports, with Keysight dropping 9.4% and Garmin increasing 8.7%.
- Toll Brothers’ positive financial update boosted its shares and the homebuilding sector, while energy companies benefited from a rise in natural gas prices.
- The Federal Reserve’s latest meeting minutes are awaited, with no rate cuts expected in the near term, and inflation updates are anticipated next week.
The Associated Press has the story:
More weakness in technology companies pulls Wall Street lower
Newslooks- NEW YORK (AP) —
Stocks fell on Wall Street Wednesday as weakness in technology companies continues to drag on the market. The S&P 500 slipped 0.3% in morning trading. The tech-heavy Nasdaq gave up 0.6% and the Dow Jones Industrial Average slipped 120 points, or 0.3%.
Palo Alto Networks was a big loser and a particularly heavy weight on the technology sector. The network security company lost a quarter of its value after giving forecasts for future billings that came in well below what analysts were looking for. Its rival, Fortinet, slumped 7.3%.
Amazon rose 1.6% following an announcement that it would be added to the Dow. Walgreens Boots Alliance, which is leaving the Dow, fell 3.4%
Bond yields remained relatively steady. The yield on the 10-year Treasury fell to 4.27% from 4.28% late Tuesday.
Markets were mostly higher in Europe and mixed in Asia.
Earnings remained the big focus for Wall Street. Nvidia will report its highly anticipated results later in the day. The chipmaker has tripled over the past year thanks to a surge in investor enthusiasm over artificial intelligence.
Several other companies made big moves following the release of their financial results. Electronic measurement technology company Keysight Technologies fell 9.4% after its profit forecast fell short of analysts’ expectations. Garmin, which makes personal navigation devices, jumped 8.7% after beating earnings forecasts.
Toll Brothers rose 5.6% after giving investors an encouraging financial update as it sees strong demand. That helped support gains throughout the homebuilding sector.
Energy companies gained ground as natural gas prices jumped 11%. Exxon Mobil rose 1.3%.
Later Wednesday, the Federal Reserve will release the minutes from its most recent meeting, where it opted to leave its benchmark lending rate alone for the fourth time in a row. Investors have all but lost hope that the central bank will cut rates at its March meeting and are looking for the first rate cut to come in June.
Investors have to wait until next week for another key update on inflation. That’s when the government will release its monthly report on personal consumption and expenses, the Fed’s preferred measure of inflation.
