Major U.S. indices edged lower on Wednesday as investors processed a wave of earnings reports and anticipated further results from Big Tech companies.
The Dow Jones Industrial Average fell by 91.5 points, or 0.2%, ending at 42,141.5, the S&P 500 declined 0.3% to close at 5,813.7, while the The Nasdaq Composite also retreated, down 0.6% to 18,607.9, after reaching a fresh record high earlier in the day.
Kicking off the tech earnings season, Alphabet reported stronger-than-expected quarterly revenue, driven by growth in its cloud business. Shares of Google’s parent company surged nearly 3% following the announcement, buoying some optimism for the sector.
However, not all tech earnings delivered positive surprises. Chipmaker AMD saw its shares drop over 10% as its fourth-quarter revenue outlook failed to meet market expectations.
The semiconductor sector also struggled, with Super Micro Computer’s stock plunging nearly 33% amid concerns surrounding its financial statements following the sudden departure of its auditor.
Investors now await more updates from tech giants Meta and Microsoft, due later Wednesday, while Apple and Amazon are scheduled to report on Thursday.
On the economic side, data provided a mixed picture. U.S. gross domestic product (GDP) grew at an annualised rate of 2.8% in the third quarter, slightly below the 3.1% analysts forecasted.
Meanwhile, payroll figures showed strength in the labor market, with private job growth reaching its highest level in over a year, according to the latest ADP report.
On the bond markets, 10-year and 2-year rates were near fresh 3-month highs of 4.3% and 4.176%, respectively.