Stocks fell on Wednesday as Wall Street grappled with a slew of corporate earnings, amid increased Treasury volatility, with traders also keeping an eye on the latest geopolitical developments. Oil prices increased.
In late trading, Meta Platforms and International Business Machines rallied on strong sales. The S&P 500 fell about 1.5% on Wednesday. The Nasdaq 100 experienced its worst drop since 2023, as Alphabet's disappointing cloud figures outweighed Microsoft's sales. A chipmaker index fell 4.1% as a result of Texas Instrument's downbeat forecasts.
Traders are looking for evidence on how businesses are dealing with high interest rates and whether consumer spending is shifting as a result of inflation.
Treasury yields retraced roughly half of their losses from multiyear highs reached earlier in the week, on expectations of auction size increases next week. The selloff was fueled by a better-than-expected September. Thirty-year US yields rose 14 basis points to 5.08%, while two-year yields remained unchanged at 5.1%. The 10-year bond yield rose 13 basis points to 4.95%.
