A trader reacts as he watches screens on the floor of the New York Stock Exchange in New YorkReuters/Brendan McDermid
US stocks traded mostly lower on Wednesday as traders eyed the release of first-quarter GDP data.
Investors are sifting through earnings, with mega-cap tech results rolling in.
Tesla rallied Wednesday as traders cheered news of a cheaper vehicle model in the works.
US stocks were mostly lower on Wednesday as traders prepared for the release of first-quarter GDP data and digested the latest round of corporate earnings.
Investors are waiting on advanced estimates for first-quarter GDP to roll out tomorrow morning, which will give markets a sense of how strong the economy is growing and point to the Federal Reserve’s next move.
The US is expected to have expanded 2.7% in the first three months of the year, according to Atlanta Fed economists, but an especially strong print would raise the risk that the Fed keeps policy tight in order to prevent inflation from gaining a foothold again.
Markets are pricing in just one or two rate cuts for the year, according to the CME FedWatch tool, down from as many as seven cuts seen at the start of 2024.
Investors are also preparing to take in more earnings results, which have been resilient so far this quarter. The S&P 500 looks on track to post 7% year-per-year earnings growth, according to FactSet. Of the companies that have reported financials so far, 74% have beat earnings estimates.
Facebook parent Meta Platforms will report after the closing bell, while Microsoft and Alphabet will report results after the close on Thursday.
Tesla shares jumped 11% higher on Wednesday after the carmaker’s latest earnings report. Revenue came in below expectations, but investors were pleased with the company’s confirmation that a low-cost electric vehicle was set to roll out sometime next year.
Here’s where US indexes stood at the 4 p.m. closing bell on Wednesday:
Here’s what else is going on:
In commodities, bonds, and crypto:
West Texas Intermediate crude oil dropped by 0.5% to $82.91 a barrel. Brent crude, the international…
..
