US markets slip, tech stocks plunge as investor anxiety mounts over economic uncertainty

As the market digests these earnings reports, attention shifts to upcoming economic data.

Major U.S. stock indexes closed lower on Wednesday, extending losses from Monday’s significant selloff. The Nasdaq Composite led the decline, falling 1.1%, while the S&P 500 and Dow Jones Industrial Average lost 0.8% and 0.6%, respectively. The downturn followed a brief recovery earlier in the day, as investor sentiment remained jittery over recent volatility in technology stocks and concerns about the U.S. economy’s health.

Chip stocks were notably hit hard, with Nvidia (NVDA) plummeting 5.1% and Broadcom (AVGO), Intel (INTC), and Arm Holdings (ARM) also experiencing sharp declines. Nvidia’s partner, Super Micro Computer (SMCI), saw its shares dive 20% after reporting disappointing results and announcing a 10-for-1 stock split.

Despite strong early gains, large-cap tech stocks finished unevenly. Microsoft (MSFT), Meta Platforms (META), and Tesla (TSLA) all retreated, while Apple (AAPL) and Amazon (AMZN) posted gains. Disney (DIS) shares fell 4.5%, even though the company surpassed Wall Street’s earnings expectations, thanks to box office successes and a profitable streaming division. Weakness in Disney’s theme parks business, however, weighed on overall sentiment.

In other earnings news, Airbnb (ABNB) dropped 13% following a warning about declining U.S. demand. Novo Nordisk (NVO), the maker of Ozempic, fell 8.4%, and CVS Health (CVS) was off 3.2%.

As the market digests these earnings reports, attention shifts to upcoming economic data.

US Treasury yields continued to rise, with the yield on the 10-year note climbing to approximately 3.96%, marking its second consecutive day of increases. This follows a drop below 3.70% earlier in the week, after a weaker-than-expected jobs report fueled expectations for a swift and substantial Fed rate cut.

In commodities, gold futures remained steady around $2,430, while crude oil prices rose 3% due to heightened concerns over Middle Eastern tensions. Bitcoin, which had dipped below $50,000 earlier this week, recently traded around $55,000, recovering from its earlier lows.

On the global front, markets largely rallied, with the Stoxx Europe 600, the Nikkei 225, and Hong Kong’s Hang Seng Index all climbing over 1%. The Nikkei 225 continued its ascent, buoyed by the Bank of Japan’s commitment to maintaining current interest rates amid market instability, which had previously contributed to global equity volatility. Meanwhile, the yen weakened significantly against the dollar.

In summary, U.S. stock indexes fell, with all three major indexes in negative territory for the week. Despite this, the S&P 500 remains up 9% year-to-date.