S&P 500 continues losing streak
NEW YORK — Sinking technology stocks sent Wall Street lower again on Wednesday, and the Standard & Poor’s 500 index fell to its fourth straight loss.
The index dipped 29.20 points, or 0.6%, to 5,022.21 for its longest losing streak since early January. It’s down 4.4% since setting a record late last month.
The Dow Jones industrial average slipped 45.66 points, or 0.1%, to 37,753.31, and the Nasdaq composite sank 181.88, or 1.1%, to 15,683.37.
Tech stocks slumped after ASML, a Dutch company that’s a major supplier to the semiconductor industry, reported weaker orders for the start of 2024 than analysts expected. Its stock trading in the United States slumped 7.1%.
Nvidia dropped 3.9% and Broadcom sank 3.5% to serve as the two heaviest weights on the S&P 500.
The weakness for tech overshadowed strongerthan-expected profit reports from some big companies, including United Airlines. It soared 17.4% after reporting stronger results for the start of the year than analysts expected, lifted by business fliers.
The losses also came despite easing pressure from the bond market, which has been dictating much of Wall Street’s action lately. Sharp tumbles for oil prices lessened investors’ worries about inflation, which helped Treasury yields ease.
The 10-year Treasury yield sank to 4.58% from 4.67% late Tuesday. The twoyear yield, which moves more closely with expectations for the Federal Reserve, fell to 4.92% from 4.99%.
They gave back some of their big recent gains driven by traders giving up on hopes for imminent cuts to interest rates by the Fed.
Yields on Tuesday had returned to where they were in November after top officials at the Federal Reserve suggested that the central bank may hold its main interest steady for a while. It wants to get more confidence that inflation is sustainably heading toward its target of 2%.
Fed officials are concerned after a string of reports this year has shown inflation remaining hotter than forecasst.
Traders are now mostly expecting just one or two cuts to interest rates from the Federal Reserve this year, according to data from CME Group. That’s down from forecasts for six or more at the start of the year.
With little near-term help expected from an easing of rates, companies will need to deliver fatter profits to justify their big runs in stock price since autumn.
“I think markets are waiting on corporate news to decide where they’ll head next,” said JJ Kinahan, chief executive of IG North America.
Travelers slumped 7.4% after the insurer’s quarterly results fell short of forecasts. It had to contend with more losses from catastrophes.
J.B. Hunt Transport Services fell 8.1% after reporting weaker results than expected. It was hurt in part by competition in the eastern part of the country and by higher wages for workers and other costs.
On the winning side was Omnicom Group. It rose 1.6% after reporting stronger profit for the latest quarter than analysts expected. The marketing and communications company highlighted growth trends in most markets around the world.
The stock of Donald Trump’s social media company continued to swing sharply, this time jumping 15.6%. That followed two straight losses of more than 14%. Experts say the stock is caught up in frenzied trading driven more by public sentiment around the former president than by the business prospects of the company.