- Wall Street mixed
- Uber tumbles on surprise loss
- US chipmakers banned from selling to Huawei
4:15pm: Dow Jones breaks 39,000 barrier, Nasdaq dips
US stocks showed a mixed performance as investors analyzed the potential impact of rate cuts and assessed earnings reports for clues regarding a corporate-driven economic recovery.
Wall Street's recent excitement over stocks waned as many traders hesitated to continue buying into the market following a robust rally earlier in May.
The Dow Jones Industrial Average increased by 0.5% to breach the 39,000 point level, notching its sixth consecutive day of gains to finish at 39,056.
The S&P 500 remained relatively unchanged at 5,188 and the Nasdaq experienced a slight decrease of about 0.2% to close at 16,303.
Despite a dip last month, stocks resumed their upward trajectory in early May, fueled by strong corporate earnings and growing anticipation of potential interest rate cuts by the Federal Reserve. The S&P 500 is now within 1% of its all-time high.
Major companies like Tesla and Google's parent company Alphabet experienced declines. Intel faced setbacks after revising its revenue forecast due to a US ban on chip exports to Huawei.
Concerns lingered over corporate earnings, particularly as tech giants met high expectations while other sectors faced scrutiny for their performance. Notable disappointments included Uber's missed forecast for a key metric, resulting in a nearly 6% drop in its shares, and Shopify's announcement of its slowest quarterly revenue growth in two years, leading to a significant 19% decline in its stock value.
Additionally, post-market attention shifted to quarterly updates from AMC Entertainment and Robinhood for potential indicators of a surge akin to meme stocks.
12.03pm: Mixed performance
The Nasdaq remains in the red at midday on Wednesday, despite battling momentarily into positive territory during the morning, while the S&P 500 is just below the flat line.
However, apart from Microsoft and Meta, most of the tech titans are trading lower, with Tesla continuing its bad run.
The biggest faller being Uber after its earnings earlier, similarly Intel and Match Group also down on the back of results.
The Dow, meanwhile, is up 0.2%, led by Cisco, Dow and Boeing.
9.32am: US stocks open lower
Wall Street opened lower after several big-name tech firms suffered dips in share prices at the open.
The Nasdaq slipped 0.6% to 16,230, while the S&P 500 dropped around 0.4% to 5,169.
Meanwhile, the Dow Jones remained unchanged at 38,861.
Joining Uber in its slump was Intel, dropping more than 2% after it lowered its second-quarter sales guidance.
It comes after Washington revoked certain export licences granted to American chipmakers for supplying goods to Huawei, following the Chinese tech giant's launch of an AI computer using an Intel chip.
America's Department of Commerce did not specify which permits were cancelled, though the decision is part of ongoing US restrictions on technology exports to Huawei since 2019, citing security concerns linked to the Chinese military.
According to reports both Intel Corp and Qualcomm Inc are affected by the embargo.
Tesla shares stumbled around 3.5% after it reports revealed US prosecutors were looking into whether it committed wire fraud during its analysis of its Autopilot systems.
8.36am: Wall Street set to open lower
US stocks are poised to open lower today, looking to break the long winning streak which started in December last year.
All three indexes are looking to open down, with Nasdaq futures implying a drop of 85 points, the Dow Jones looking at a 46-point fall and an 18-point slip for the S&P 500.
Despite the downturn, there have been several stocks making several pre-market gains following the release of results.
Reddit (NYSE:RDDT) (Reddit (NYSE:RDDT)) shares popped around 12% after it reported and optimistic first set of results since listing.
For Q2, the social media platform guided adjusted EBITDA between break-even and $15 million, better than the $18.2 million loss expected by analysts.
Revenue is seen in the range of $240 million and $255 million, ahead of estimates of $223.8 million.
Moving the other way was Uber, which slipped around 9% after it suffered an unexpected loss.
A net attributable loss of $654 million was reported for the first quarter and reflected $721 million of net unrealized losses related to the revaluation of equity investments.