- US stocks fell on Wednesday led by selling in the tech sector.
- Shares of Uber and Intel fell as traders worried about their earnings and weak outlook.
- Tesla also fell after Reuters reported an investigation into the company's claims about its Autopilot feature.
U.S. stocks fell on Wednesday, led by a sell-off in the tech sector as investors took weaker financials and earnings expectations.
Major indexes were lower in early morning trading, with the Nasdaq Composite down 0.6%.
Uber shares fell about 5% after the ride-hailing service posted a $654 million loss in the first quarter. Intel fell 2.5% after the company lowered its guidance. Tesla shares fell 3.5% on reports that the Justice Department is investigating the company's claims about its Autopilot feature and whether its statements about the technology mislead investors.
Corporate profits are generally trending favorably. The S&P 500 index is expected to grow earnings at least 7% in the first quarter, with 77% of companies reporting so far beating earnings estimates, according to FactSet.
But investors remain concerned about the prospect of a recession and interest rate cuts later this year.
“If interest rates remain at these high levels for another 6-12 months, too much corporate and real estate debt will face repricing, and this tightening will weaken the real economy,” said David Bernsen, chief investment officer at Bernsen Group. “This increases the likelihood of an impact on the In Wednesday's memo.
Markets are pricing in only one or two rate cuts by the end of the year, suggesting the federal funds rate will remain near 5%, according to the CME FedWatch tool. Meanwhile, the New York Fed has priced in a 58% chance of the U.S. going into recession by next March.
Here are the U.S. indexes as of the 9:30 a.m. opening bell Wednesday:
Here's what else happened today:
In Commodities, Fixed Income and Cryptocurrencies:
- West Texas Intermediate crude oil fell 0.73% to $77.81 a barrel. The international benchmark Brent crude oil fell 0.73% to $82.55 per barrel.
- Gold fell 0.21% to $2,309.40 per ounce.
- The yield on the 10-year U.S. Treasury rose 2 basis points to 4.49%.
- Bitcoin fell 2.5% to $62,088.
