Nasdaq sinks after early Big Tech bust, with Fed on deck

U.S. stocks were mostly lower on Wednesday, with the Nasdaq down more than 1% at the open after early results from the tech giants largely failed to please investors. Wall Street was also preparing for the Federal Reserve's first interest rate decision this year.

The tech-heavy Nasdaq Composite (^IXIC) fell about 1.1% early Wednesday. The benchmark S&P 500 (^GSPC) traded about 0.5% lower after falling slightly below its record high on Tuesday. Meanwhile, the blue-chip index Dow Jones Industrial Average (^DJI) was trading slightly above the zero line.

The “Magnificent Seven” names Microsoft (MSFT) and Alphabet (GOOGL, GOOG) as well as chipmaker AMD (AMD) were the focus of the earnings list on Tuesday. All three stocks took a hit on Wednesday, with losses of more than 5% at Google parent and AMD outpacing Microsoft's modest decline.

The poor start for tech mega-caps, which are expected to do much of the heavy lifting for the S&P 500 this earnings season, could unsettle Wall Street — at least until Apple (AAPL), Amazon (AMZN) and Meta (META) will be on Thursday.

Or until Wednesday afternoon, when the Fed will be in the spotlight during a busy week. The Fed is widely expected to keep interest rates steady at their highest level in several decades, but investors are turning their attention to any signs of when — and to what extent — the central bank will move to cut rates, like Yahoo Finance's Jennifer Schonberger reports.

Boeing (BA) was the highlight of Wednesday morning's earnings list as there were a number of safety concerns surrounding its aircraft. The company beat Wall Street's expectations for the fourth quarter, but the aircraft maker suspended its 2024 forecast.

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• Wednesday, January 31, 2024, 8:36 a.m. CST
  

  Tech profit volatility is weighing on key opening averages

  U.S. stocks were mostly lower on Wednesday, with the Nasdaq down more than 1% at the open after early results from the tech giants largely failed to please investors. Wall Street was also preparing for the Federal Reserve's first interest rate decision this year.

  As we noted throughout the week, negative earnings reactions from companies like Microsoft (MSFT) and Alphabet (GOOGL, GOOG) could be pivotal for the market. With tech stocks expected to account for much of the brunt of the S&P 500 this earnings season, that could unsettle Wall Street — at least until Apple (AAPL), Amazon (AMZN) and Meta (META) take their turn on Thursday.

  Notably, this market narrative may not hold true for the entirety of Wednesday either. Federal Reserve Chair Jerome Powell will draw investors' attention today with his press conference at 2:30 p.m. ET.

• Wednesday, January 31, 2024, 7:23 a.m. CST
  

  The U.S. economy added 107,000 private payroll jobs in January

  The latest ADP employment report showed that private employers added 107,000 jobs in January, below estimates of 150,000 and below the 158,000 in December.

  “Progress on inflation has brightened the economic picture, despite a slowdown in hiring and wages,” ADP Chief Economist Nela Richardson said in the company's press release. “Inflation-adjusted wages have improved over the past six months, and the economy appears to be headed for a soft landing in the U.S. and globally.”

  ADP's latest report also included a closer look at the slowdown in wage growth among job changers, a key part of the post-lockdown labor market.

  ADP's monthly private payroll data released on Wednesday showed that annual wage growth for workers changing jobs fell to 7.2% in January, the slowest pace of growth since May 2021. Meanwhile, workers changing jobs saw the same Retained jobs saw wages rise 5.2% last month, the smallest since August 2021.

• Wednesday, January 31, 2024, 6:41 a.m. CST
  

  A busy week continues

  Good morning! The Federal Reserve takes center stage today: Yahoo Finance's Jennifer Schonberger has everything you need to know before making the decision.

  Here's what to look for in a tighter earnings list sandwiched between the tech giants' reports:

  Aflac (AFL), Boeing (BA), Hess (HES), Mastercard (MA), MetLife (MET), Novo Nordisk (NVO), Phillips 66 (PSX), Qualcomm (QCOM)