
Big Tech giants fall after market close on earnings shortcomings – US Market Wrap
Stocks fell and bond rates climbed, though both reduced larger swings after early fears that the Federal Reserve was becoming more concerned about inflation were allayed by Chair Jerome Powell in a press conference.
The S&P 500 fell by around half a percentage point after briefly approaching 1%. Big tech was still under pressure ahead of the start of the group’s earnings season. Microsoft fell 4% after missing cloud revenue projections. Tesla fell 4% on poor earnings.
The Federal Open Market Committee kept the federal funds rate in a range of 4.25%-4.5%. In a statement, officials repeated that inflation remains “somewhat elevated” but removed a reference to it having made progress toward their 2% goal. Later, Powell clarified the reference to inflation was just a decision to shorten the sentence, rather than send any sort of meaningful signal.
The yield on 10-year Treasury notes rose two basis points to 4.55%. The loonie recovered after the Bank of Canada slashed interest rates, but it did not provide any further information on future borrowing costs.