Market Snapshot: Dow clings to gain, S&P turns negative as investors assess weak tech earnings, pace of Fed rate hikes

by | Oct 26, 2022 | Stock Market

U.S. stocks wavered between gains and losses in early afternoon trade Wednesday as investors digested disappointing results from tech behemoths Microsoft and Alphabet, while assessing the Federal Reserve’s path after the Bank of Canada delivered a smaller-than-expected rate hike. How are stock indexes trading
The Dow Jones Industrial Average
DJIA,
-0.14%
remained up 118 points, or 0.4%, at 31,959.

The S&P 500 
SPX,
-0.81%
was down 9 points, or 0.2%, at 3,850.

The Nasdaq Composite declined 157 points, or 1.4%. at 11,041.

On Tuesday, the Dow rose 337 points, or 1.1%, the S&P 500 rose 1.6% and the Nasdaq advanced 2.3%. The S&P 500 is up 7.6% so far in October, but remains down 19% for the year-to-date.

What’s driving markets The S&P 500 has rallied since Thursday’s close as investors assessed a generally positive third quarter earnings season. Meanwhile, the Bank of Canada’s smaller-than-expected rate rise on Wednesday buoyed hopes that the Federal Reserve may eventually be less aggressive in hiking rates. Also helping to boosting the positive sentiment is the continued slide on Wednesday in bond yields
TMUBMUSD10Y,
4.030%
and the dollar
DXY,
-1.11%.
The yield on the 10-year Treasury retreated to 4.0624% from 4.109% as of Tuesday afternoon. The ICE U.S. Dollar Index, a measure of the currency against a basket of six major rivals, was down 1.1% at 109.76, as offshore Chinese yuan
CNHUSD,
+1.61%
surged 1.8% to 7.1917 after Chinese banks were reported to sell the greenback to help drive the move. “The U.S. dollar’s near parabolic rise against major currencies has eased as data releases, including manufacturing, housing, and even the seemingly stubborn labor market, suggest the economy is slowing in response to higher interest rates,” wrote Quincy Krosby, chief global strategist for LPL Financial, in a Wednesday note. “The stronger dollar has become a major headwind for S&P 500 multinationals, especially amid a backdrop of weake …

Article Attribution | Read More at Article Source

Share This