US Stocks See Sell-off Ahead Of Fed And Earnings

"); jQuery("#212 h3").html("

Related News Programmes

"); });

2023-01-31 HKT 05:34

Share this story

facebook

  • More than 100 S&P 500 companies are expected to report results this week. Photo: Shutterstock

    More than 100 S&P 500 companies are expected to report results this week. Photo: Shutterstock

Major US stock indexes sank on Monday, weighed down by declines in technology and other megacap shares, as investors looked toward a major week of events including central bank meetings and a slew of earnings reports.

The heavyweight tech sector dropped 1.9 percent while energy shed 2.3 percent, the biggest drop among the S&P 500 sectors. Shares of Apple Inc, Amazon.com Inc and Google parent Alphabet Inc, which are due to post results later this week, all slumped.

More than 100 S&P 500 companies are expected to report results this week, which also includes central bank meetings in the United States and Europe and closely watched US employment data.

“The market has had a big run and the trading is a bit more cautious heading into a week which likely will be an inflection point for the overall market,” said Keith Lerner, co-chief investment officer at Truist Advisory Services.

The Dow Jones Industrial Average fell 0.77 percent to 33,717, the S&P 500 lost 1.30 percent, to 4,018 and the Nasdaq Composite dropped 1.96 percent, to 11,394.

US Treasury yields rose, providing another pressure point for tech shares that have otherwise rebounded to start the year after a rough 2022.

Despite Monday's declines, the S&P 500 remained on track to post its biggest January gain since 2019.

The US central bank is seen hiking the Fed funds rate by 25 basis points at the end of its two-day policy meeting on Wednesday, following a 2022 in which the Fed aggressively boosted rates to control soaring inflation.

Fed Chair Jerome Powell's news conference will be scrutinised for whether the rate-hiking cycle may be coming to a close and for signs of how long rates could stay elevated.

“It’s probably one of the most important meetings since the whole thing began," said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute. "Unless the Fed extends that timeline meaningfully from what the market expects, which is that the Fed will be done in the next meeting or two, this may end up marking the pause, so to speak.”

Meanwhile, the European Central Bank is expected to deliver another large rate hike on Thursday.

Investors are also focused on earnings reports, amid concerns the economy may be facing a recession. With more than 140 companies having reported so far, S&P 500 earnings are expected to have fallen 3 percent in the fourth quarter compared with the prior-year period, according to Refinitiv IBES.

In company news, shares of Johnson & Johnson fell 3.7 percent after the healthcare giant's strategy to use bankruptcy to resolve the multibillion-dollar litigation over claims its talc products cause cancer was rejected by a federal appeals court. (Reuters)

RECENT NEWS

US Stocks Rise On Hopes Of Pause In Rate Increases

Wall Street stocks finished solidly higher on Thursday, reflecting better sentiment on the US economy and a consensus vi... Read more

China's Financial Risks 'controllable': Regulators

The head of the National Financial Regulatory Administration on Thursday told a high-profile forum in Shanghai that the ... Read more

Banks Cut Yuan Deposit Rates, Could Boost Consumption

China's biggest banks on Thursday said they have lowered interest rates on yuan deposits, in actions that could ease pre... Read more

Cheese And Wine Put EU, Australia Deal In Peril

Australia on Thursday threatened to walk away from a blockbuster free trade deal with the European Union unless its prod... Read more

US Stocks End Mixed As Tech Shares Are Sold Off

Gains by industrial companies lifted the Dow on Wednesday, while weakness among technology shares pushed the Nasdaq deci... Read more

Amazon 'plans Prime Video Streaming Service With Ads'

Amazon.com is planning to launch an advertising-supported tier of its Prime Video streaming service, the Wall Street Jou... Read more