The U.S. stock market plunged Monday as investors continued to digest first-quarter earnings from the world’s biggest companies and focused on looming updates from the likes of Microsoft and Google parent Alphabet.
The Wall Street benchmark S&P 500 closed 0.1% higher, while the tech-heavy Nasdaq Composite closed 0.3% lower.
Morgan Stanley’s U.S. equities team said stocks are generally doing well heading into the current earnings season and are at risk as investors begin to focus on management’s increasingly cautious outlook.
“Given the more pessimistic earnings outlook this year for our more tactically oriented clients, we believe this dynamic poses near-term risk to our share price,” they wrote in a note to clients.
Coca-Cola shares fell 0.2% after the beverage group reported 5% net sales growth in the first quarter.
Microsoft, Alphabet and Amazon’s latest results this week are likely to be the focus of investors’ attention. big tech It has held up well despite US interest rates continuing to rise. This is a factor that has supported the wider market. Microsoft is up 18% year-to-date and Amazon is up 29% of him. The S&P 500 is up just over 7% so far.
Bed Bath & Beyond drops 39% to 18 cents a share after home products group Filing for Chapter 11 Bankruptcy Protection on sunday.
U.S. government debt rose Monday, boosting rate-sensitive 2-year yields national treasury It fell 0.04 percentage points to 4.14%, while the benchmark 10-year bond yield fell 0.06 percentage points to 3.51%.
BMO strategists noted that trading volume is slightly above half of its recent average. Movements are likely to remain subdued ahead of first-quarter gross domestic product (GDP) numbers due on Thursday and inflation data to be watched on Friday.
The Federal Reserve will meet next week to decide degree of interestA 0.5 percentage point hike is broadly priced in, but investors are eyeing the possibility of more rate cuts later this year.
An index measuring the dollar’s strength against a basket of six major currencies fell 0.3%.
China-related stock exchanges started the week weaker as Hong Kong’s Hang Seng Index fell 0.6% and the Hang Seng Tech Index fell 0.2%.
Bloomberg reported last week that U.S. President Joe Biden is poised to further restrict the ability of U.S. companies to invest in key parts of China’s economy.
China’s CSI 300 fell 1.2%, dragged down by the non-cyclical nature of basic materials, real estate and consumers.
The European region-wide Stox 600 and London FTSE 100 were both down less than 0.1%.The move came when Credit Suisse announced suffered an outflow of 61.2 billion francs ($68.6 billion) in the first quarter. Shares of UBS, which agreed to buy Credit Suisse last month, surged 0.8%.
https://www.ft.com/content/5eaca68e-db7d-4af6-9445-42abc4191f00 Wall Street Shakes Ahead of Big Tech Earnings