Stocks fell sharply on Wednesday, with the tech sector leading the decline as investors grew uncertain about the Federal Reserve’s rate-cut timeline amid a flurry of earnings reports. Major companies like Boeing (BA) and Tesla (TSLA) were at the forefront of the day’s market activity.
The Dow Jones Industrial Average (^DJI) dropped over 400 points, nearly 1%, while the Nasdaq Composite (^IXIC), heavily weighted toward tech stocks, declined by around 1.6%. The S&P 500 (^GSPC) also saw a significant dip, falling over 0.9%.
Investor sentiment has soured as debate continues over the pace at which the Federal Reserve will cut interest rates in the coming year. Concerns about rates staying elevated for a prolonged period have pressured bond prices, pushing the 10-year Treasury yield (^TNX) to 4.24%, a level not seen since July.
Big tech names led the market downturn, with Meta (META) sliding over 3%, and Amazon (AMZN) and Nvidia (NVDA) both down more than 2.5%. Investors were eagerly awaiting Tesla’s (TSLA) earnings report, set to be released after the bell.
Despite the broader market struggles, Tesla’s earnings provided some relief for tech investors. The electric vehicle giant reported adjusted earnings per share of $0.72, surpassing Wall Street’s expectations of $0.60. Tesla shares surged nearly 8% in after-hours trading on the positive earnings news.
Meanwhile, Boeing (BA) reported a significant loss in its quarterly earnings, which were released before the bell. The aerospace company also awaited the outcome of a crucial vote by striking factory workers on a new pay deal.
