United States benchmark averages closed lower on Wednesday (Thursday AEST) as investors digested a flurry of corporate earnings, scrutinised Federal Reserve meeting minutes.
The Dow Jones Industrial Average fell 245.0 points, or 0.6%, to finish at 42,098.7. The S&P 500 declined 33.0 points, also 0.6%, to 5,888.6, while the Nasdaq Composite dropped 98.2 points, or 0.5%, to settle at 19,100.9.
Okta slumped 16.2% after the identity management software firm held its full-year guidance steady despite posting better-than-expected quarterly results. The company cited ongoing macroeconomic uncertainty as a reason for caution.
In contrast, retailers Abercrombie & Fitch and Dick’s Sporting Goods advanced 14.7% and 1.7%, respectively, after issuing strong earnings reports.
Markets had their eyes firmly on Nvidia, which reported after the bell. The tech giant delivered earnings and revenue that exceeded expectations, driven by continued explosive growth in its data centre segment.
Nvidia shares rose around 4% in after-hours trading, after closing slightly lower during the regular session.
Meanwhile, investors assessed the Federal Reserve’s May meeting minutes, which reflected a cautious stance on monetary policy. Officials acknowledged economic uncertainty and warned that inflation could force “difficult tradeoffs” in future decisions.
Treasury yields climbed amid the cautious sentiment. The 30-year yield briefly touched 5%, while the 10-year rate rose 0.6% to 4.475%, and the 2-year yield increased 0.4% to 3.992%.
