Stock Market Today: S&P 500 Dips, Alphabet and AMD Plunge/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Wall Street remained mixed Wednesday as investor focus shifted from Trump’s trade tariffs back to corporate earnings. The S&P 500 fell 0.1%, dragged down by Alphabet (-7.5%) and AMD (-10.1%), while Mattel (+13.5%) posted strong gains. Bond yields eased, and global markets showed mixed performance as uncertainty over trade policies and inflation continues.
Stock Market Movement: Quick Looks
- S&P 500 Falls Slightly: Down 0.1%, with tech stocks weighing on the index.
- Dow Jones Rises: Gains 22 points (0.1%) in early trading.
- Nasdaq Down 0.5%: Tech stocks suffer as investors react to earnings reports.
- Alphabet Drops 7.5%: Despite beating profit estimates, concerns over cloud growth and AI spending drag shares down.
- AMD Plunges 10.1%: Revenue forecast misses Wall Street expectations, despite solid earnings.
- Mattel Surges 13.5%: Strong earnings beat estimates, boosting investor confidence.
- Disney Swings to Loss: Drops 0.9% despite better-than-expected profits.
- Bond Yields Drop: 10-year Treasury yield falls from 4.52% to 4.44%.
Stock Market Today: S&P 500 Dips, Alphabet and AMD Plunge
Deep Look
Wall Street opened with a mixed performance on Wednesday as investors shifted focus from Trump’s new tariffs to corporate earnings reports. While some companies exceeded expectations, others fell short, leading to significant stock swings across major indices.
Tech Stocks Struggle as Alphabet and AMD Plummet
Alphabet Inc. (GOOGL) fell 7.5%, even after posting stronger-than-expected profits for the latest quarter. Investors were concerned about:
- Slowing cloud growth, which missed Wall Street estimates.
- $75 billion in capital expenditures, exceeding analysts’ expectations by $15 billion, as Google ramps up AI investments.
AMD (Advanced Micro Devices) tumbled 10.1% after its profit beat expectations but its revenue forecast fell short. Analysts were also disappointed that CEO Lisa Su did not provide more details on AI growth projections.
Mattel Shines, Disney Fades
While tech stocks weighed on the markets, Mattel (MAT) soared 13.5% after reporting much stronger-than-expected profits, lifting investor sentiment in the consumer goods sector.
Meanwhile, Disney (DIS) initially gained after a solid earnings report, but later fell 0.9% as investors digested the numbers. Strong box office performance for “Moana 2” helped drive revenue.
Trump’s Tariffs Still Loom Over Markets
After shaking global markets earlier in the week, concerns over Trump’s new 10% tariffs on Chinese goods eased slightly as the administration granted temporary exemptions to Canada and Mexico.
However, analysts at Goldman Sachs warned that:
- Tariffs on EU imports are still expected.
- Inflation could see a temporary spike, potentially delaying further Fed rate cuts.
- The long-term impact on trade remains uncertain as Trump continues his aggressive stance.
Bond Yields Decline
In the bond market, yields eased slightly, with the 10-year Treasury yield dropping from 4.52% to 4.44%. Lower yields suggest that investors still expect some rate cuts this year, despite trade-related inflation concerns.
Global Markets React
Stock markets outside the U.S. showed mixed performance:
- Europe: Indices fluctuated with modest gains and losses as investors assessed trade risks.
- Asia:
- Hong Kong’s Hang Seng fell 0.9% amid concerns over China’s economic outlook.
- South Korea’s Kospi gained 1.1%, boosted by chip stocks.
- Japan’s Nikkei 225 edged up 0.1%, as Honda’s stock rose and Nissan fell 4.9% after reports that its merger talks with Honda collapsed.
What’s Next?
With earnings season in full swing and Trump’s tariff policies still unfolding, investors are bracing for continued volatility. The market will closely watch:
- Upcoming earnings reports from major tech and retail companies.
- Any updates on U.S. trade negotiations, particularly with the European Union.
- Inflation data and Fed policy signals, as interest rate expectations shift.
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