Wall Street: Wall Street in disarray, Microsoft helps the S&P rebound


by Bansari Mayur Kamdar and Noel Randewich

(Reuters) – The New York Stock Exchange ended in mixed order on Wednesday, with the S&P-500 and the Dow Jones rebounding from sharp declines the day before, as strong quarterly results from Microsoft and Visa reassured investors concerned about the prospect of a global economic slowdown and rising interest rates.

The Dow Jones index gained 0.19% to 33,301.93 points.

The broader S&P-500 gained 0.21% to 4,183.92 points.

The Nasdaq Composite fell 0.01% to 12,488.93 points.

Microsoft, one of the tech giants whose results were expected this week, rose after saying on Tuesday evening that it expects double-digit growth for its annual financial year.

Visa, for its part, jumped following a turnover forecast above pre-coronavirus health crisis levels.

Against a backdrop of fears that the US Federal Reserve (Fed) will adopt a more aggressive policy than expected to counter the surge in inflation, the main Wall Street indices had marked a sharp decline on Tuesday, the Nasdaq having fallen to a more low since December 2020.

Among the main indices of the S&P-500, that of communication services ended in the red (-2.6%), weighed down by the 3.7% decline in Alphabet, parent company of Google and YouTube, the next day. of its post-closing publication of disappointing quarterly results.

“What we’re really seeing is that failures are punished a little more harshly, but (outcomes above expectations) are also rewarded,” said Rob Haworth, senior strategist at US Bank Wealth Management in Seattle.

Noting the level of interest rates and bond yields, he said there was a “big question mark” over growth and market caps.

Meta Platforms, Facebook’s parent company, whose quarterly results were expected after the close, declined 3.3%.

Nearly a third of S&P-500 companies reported results this week. Overall, the season has so far been better than expected, with nearly 80% of the 176 companies reporting results beating Wall Street expectations.

Boeing plunged 7.5% following the day’s announcement that it would halt production of the 777X due to certification issues, a pause that came with a further $1.5 billion cost overrun. dollars.

Down 12% on Tuesday amid concerns that his boss Elon Musk would sell shares to fund his takeover of Twitter, Tesla rebounded 0.6%.

(French version Jean Terzian)

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