The Nasdaq and S&P 500 fell on Wednesday as traders assessed disappointing earnings from technology giants Microsoft and Alphabet.
The Nasdaq is down 2%. The S&P 500 lost 0.9%. The Dow Jones Industrial Average 30 stocks traded up 57 points, down 0.2%.
Utilities and Real Estate traded slightly negatively as a sector late in the day. Join the discretion of consumers, communications and technology services in the red.
Earlier in the day, the Dow rose more than 300 points as Visa supported the index thanks to solid earnings. The S&P 500 was also positive.
Shares of Google subsidiary Alphabet plunged 6.4% after the tech giant Missed expectations on the final result. Alphabet also reported a drop in YouTube ad revenue, which prompted investors to discuss the prospects for other tech companies that rely on ad spend.
Meanwhile, Microsoft stock fell about 6% after that The tech giant reports weaker-than-expected cloud revenue In its latest quarterly results, though, it beat earnings and revenue estimates. The company also issued guidance on current quarter revenue that did not live up to expectations.
The fluctuations in major indexes reflect a “tug of war” between US companies and the Federal Reserve, said Keith Buchanan, portfolio manager at GLOBALT Investment, which has caused investors to try to weigh what companies are reporting and what that means for higher interest rates. He said the first big tech reports had a special impact because it’s an industry in which so many have invested.
“The day’s movement for today is kind of a microcosm of what we have been feeling as investors over the past several weeks,” said Keith Buchanan, portfolio manager at Global Investments. “Optimism is built almost entirely on a pessimistic outlook. Optimism around the Fed pivot only occurs in a scenario where things deteriorate faster, from a macroeconomic point of view.”
“The volatility is here, and it’s been around for a while and I think it’s probably going to stay,” he added. “Not on a daily basis, week to week, but on a daily basis, just because of the situation that the investors are in now.”
In other earnings news, shares of Harley-Davidson rose 6.7% after the motorcycle maker reported beating expectations before the bell. Boeing lost 9.4% after the aircraft maker Reported a quarterly loss and missed revenue forecast.
Shares attempted to rally earlier in the day, as traders tried to shake off disappointing quarterly results for Microsoft and Alphabet.
If indices close negative, the S&P 500 and Nasdaq will cut three-day winning streaks.