Tech Stocks Hit on MicroSOFT Earnings – US Market Wrap
A selloff in some of the world’s largest technology companies pushed stocks lower ahead of key central bank decisions. Bonds and gold prices rose amid a surge in geopolitical risks. Oil prices remained low.
In late trade, Microsoft fell 5% after its cloud revenue disappointed Wall Street. Advanced Micro Devices rose after reporting better-than-expected earnings. The numbers will set the tone for reports from other heavyweights this week, as markets prepare for Wednesday’s Federal Reserve decision. While the Fed is expected to keep benchmark interest rates at their highest level in more than two decades, traders will be looking for signs that policy easing is about to begin.
The S&P 500 fell to around 5,435. The Nasdaq 100 declined 1.4%. The gauge of the “Magnificent Seven” megacaps fell 2%. The Russell 2000 index of small businesses rose 0.3%.
Treasury 10-year yields fell three basis points, to 4.14%. West Texas Intermediate crude hovered around $75. In response to a rocket attack in the Golan Heights on Saturday, Israel launched a strike on Beirut, targeting a Hezbollah commander.
The yen rose. Bank of Japan Governor Ueda will face intense scrutiny Wednesday when he unveils his quantitative tightening plans and makes a decision on the policy interest rate. According to Japan’s newly appointed top foreign exchange official, recent yen weakness has had a negative impact on the Japanese economy.
