July 2, 2022
  • July 2, 2022

Nasdaq composite falls after hitting new high

By on April 28, 2021 0

A day after hitting a new high, the Nasdaq Composite Index fell 48.56 points, or 0.3%, to 14,090.22. The S&P 500 Index fell 0.9 points or less than 0.1% to 4,186.72 from record highs. The Dow Jones Industrial Average barely moved, ending the day at 33,984.93, up 3.36 points or less than 0.1%.

For the first time in three weeks, the S&P 500 ended the day in the red, ending the steady rise in the stock market. Tesla shares weighed on the broad index after investors were disappointed with the electric carmaker’s latest quarterly report, underscoring high market expectations for stocks this earnings season.

Tesla shares fell $ 33.46 or 4.5% to $ 704.74 in the trading session, after the company posted a record profit. The electric carmaker’s stock has struggled this year, increasing only 0.1% since the end of December; beset by a series of issues, including an investigation into a Model S sedan crash in Texas earlier this month. Over the past year, the stock has risen over 300 percent.

After beating Wall Street’s earnings expectations, Microsoft shares fell more than 3% after hours.

Investors became more positive about Alphabet’s earnings report after breaking sales records in the first quarter. Google’s parent company on Tuesday said a net equity gain of $ 4.75 billion in its first-quarter earnings report, representing 22% of Alphabet’s pre-tax revenue. Net profits rose more than 160% to $ 17.9 billion, surpassing the previous high of $ 15.2 billion set in the fourth quarter.

As markets await the results of the Fed conference, bonds weakened, pushing 10-year Treasury yields above 1.6%. Inflation projections for the next ten years have reached an eight-year high, according to a market indicator.

Before the economy and labor market fully rebounded from the Covid-19 pandemic, the Fed indicated that it had no concrete intention of tightening monetary policy. Therefore, investors will pay close attention to the press conference by Federal Reserve Chairman Jerome Powell after the Fed’s new policy meeting on Wednesday. Investors will be watching for signs that the Fed’s stance on interest rates has changed in light of recent economic evidence, some of which shows inflation is back.