U.S. stock markets saw declines on Wednesday, with the S&P 500, Dow Jones, and Nasdaq all posting losses. Companies like Macy’s and Abercrombie & Fitch reported mixed results, while Nvidia’s earnings were highly anticipated. The bond market reacted moderately as the Fed’s minutes revealed no changes in interest rates, amid ongoing inflation concerns.
U.S. stock markets declined on Wednesday, dipping after a strong rally the previous day that brought them nearer to their all-time highs. The S&P 500 saw a decrease of 0.6%, still resting about 4.2% below its record. Just a month ago, the index was almost 20% off that high, showing some signs of recovery amid easing trade war turbulence, particularly relating to President Donald Trump’s policies.
The Dow Jones Industrial Average fell 244 points, representing a 0.6% drop, while the Nasdaq composite slipped 0.5%. Trading activity was subdued as investors braced for Nvidia’s quarterly earnings report, crucial for those eyeing trends in the artificial intelligence sector. Nvidia’s stock experienced a slight decline of 0.5% ahead of the financial release, with mounting speculation regarding the sustainability of its high share price.
In corporate news, Macy’s had a volatile day, with its stock fluctuating significantly despite revealing lower-than-anticipated dips in revenue and profit for the quarter. Although Macy’s maintained its revenue forecast, it did reduce its profit outlook, attributing some of this to the impact of tariffs and a slight slowdown in consumer spending. Ultimately, its stock closed down 0.3%.
On a brighter note, several retail companies surpassed analysts’ predictions. Abercrombie & Fitch shares soared 14.7% following better-than-expected earnings, with CEO Fran Horowitz highlighting global growth and success for the Hollister brand. Additionally, Dick’s Sporting Goods shares climbed 1.7% as they exceeded expectations and reaffirmed their annual projections.
However, not every firm enjoyed positive responses. Okta’s shares plummeted 16.2% despite the company reporting above-expected quarterly outcomes, suggesting investors were anticipating an even stronger performance after the stock’s nearly 60% increase this year. GameStop also faced a downturn, dropping 10.9% after announcing the purchase of 4,710 bitcoins, valued at over $500 million.
Overall, the S&P 500 closed 32.99 points down at 5,888.55. Meanwhile, the Dow decreased 244.95 to finish at 42,098.70, and the Nasdaq ended at 19,100.94 after falling 98.23 points. In the bond market, the yield on the 10-year Treasury rose slightly to 4.47% from 4.43% on Tuesday.
Despite the Federal Reserve releasing the minutes from its last meeting, which maintained the benchmark lending rate, there was limited movement in the bond market. Concerns over inflation related to ongoing trade tariffs hindered the possibility of rate cuts, which could otherwise support economic growth. Last week, rising yields unsettled markets globally amid fears regarding the U.S. government’s increasing debt. International markets reflected a similar trend as many major indexes across Europe and Asia experienced modest declines, although the South Korean Kospi bucked the trend with a 1.3% rise, spurred onward by advancements in technology companies such as Samsung Electronics