U.S. Stocks Fall Amid Mixed Earnings and Economic Data as Tech and Safe-Haven Assets Drive Market Moves

On Wednesday, major U.S. stock indexes fell as corporate earnings reports and fresh economic data presented a mixed picture for investors.  Nasdaq Composite slipped 0.6%, retreating from its intraday high, while the S&P 500 and Dow Jones Industrial Average dropped 0.3% and 0.2%, respectively. Wall Street is keeping a close watch on additional reports from major technology companies, as the sector has been a driving force behind market movement. 

Tech Stocks and Major Movers Technology stocks were at the center of the day’s action. Super Micro Computer (SMCI) led declines with a staggering 33% drop after its auditor resigned, raising red flags about the company’s financials. Advanced Micro Devices (AMD) fell 11% following a lackluster earnings report, while Alphabet (GOOGL) managed to gain 2.8% on better-than-expected quarterly results. Investors are also awaiting earnings from Microsoft and Meta, which released after the bell, with Amazon and Apple set to follow tomorrow. 

Market Highlights Beyond the tech sector, notable movements included a 6.3% decline for pharmaceutical company Eli Lilly (LLY) after missing earnings estimates, while Reddit’s (RDDT) strong report led to a 42% surge in its stock. Garmin (GRMN) saw a notable rise of 23%, marking the largest gain in the S&P 500 for the day, as the company exceeded sales and profit expectations and raised its guidance for the year. 

Economic Data and Federal Reserve Outlook The morning’s economic releases painted a varied picture. ADP private payroll numbers beat expectations, but third-quarter GDP growth came in lower than forecasted, underscoring uncertainty about the U.S. economy’s trajectory. With inflation data due tomorrow and the jobs report on Friday, the Federal Reserve’s next interest rate decision remains a critical concern. In line with these worries, the yield on the 10-year Treasury rose to 4.30% as markets continue to gauge the Fed’s future moves. 

Gold and Cryptocurrency Gold futures hit an all-time high, briefly climbing past $2,800 as investors sought refuge amid market uncertainty. Bitcoin, however, experienced a pullback, trading at around $72,300 after approaching record highs earlier in the week. 

Outlook With major tech earnings, key economic data, and the Federal Reserve’s stance on inflation in focus, investors are bracing for continued market volatility. As corporate earnings season progresses, Wall Street will likely remain reactive to the developments, especially in tech and safe-haven assets like gold.