PiCK

US Stocks End Mixed Ahead of Big Tech Earnings, Fed Meeting

Source

Korea Economic Daily

Summary

New York stocks ended mixed as investors stayed on the sidelines ahead of big tech earnings releases and the Federal Open Market Committee meeting.
With expectations favoring a hold in the benchmark interest rate, the federal funds futures market priced in a 26.8%% chance of a 25-basis-point cut by the end of December and a 68.9%% chance of no change.
By sector, financials, communication services and technology outperformed, while consumer staples and some names including semiconductor stocks, Adobe and Domino's Pizza came under pressure.

Forecast Trend Report by Period

*SEC Chair Gary Gensler appears on a broadcast before ringing the ceremonial opening bell at the New York Stock Exchange on April 5. Photo by Kim Beom-jun in New York.*

US stocks ended mixed on April 27 as investors held back ahead of earnings from megacap technology companies and the Federal Reserve's policy meeting. The market impact of stalled US-Iran talks also appeared to be fading as the impasse dragged on.

On the New York Stock Exchange, the Dow Jones Industrial Average fell 62.92 points, or 0.13%, to 49,167.79. The S&P 500 rose 8.83 points, or 0.12%, to 7,173.91, while the Nasdaq Composite gained 50.50 points, or 0.20%, to 24,887.10.

Alphabet, Microsoft and Meta Platforms are scheduled to report earnings after the close on April 29. Amazon.com and Apple are due to release results after the market closes on April 30.

The Fed's April Federal Open Market Committee meeting is set for April 28-29. Expectations have strengthened that the central bank will leave its benchmark rate unchanged. Investors are also watching Chair Jerome Powell's remarks closely.

With those major events looming, volatility in the main indexes remained limited.

Financials, communication services and technology shares rose, while all other sectors declined. Consumer staples led the losses with a drop of more than 1%.

The Philadelphia Semiconductor Index fell 1%. Nvidia, Taiwan Semiconductor Manufacturing Co., Micron Technology and Intel advanced, but most other chip stocks retreated. Advanced Micro Devices dropped 3.79%, and chip designer Arm Holdings sank more than 8%.

Adobe fell 2.50% after Mizuho downgraded the stock to neutral from outperform.

Domino's Pizza plunged 8.84% after cutting its forecast for US same-store sales growth this year.

CME's FedWatch tool showed the federal funds futures market pricing in a 26.8% chance of a 25-basis-point rate cut by the end of December. The probability of no change rose to 68.9%.

The Cboe Volatility Index, or VIX, fell 0.69 point, or 3.69%, to 18.02.

Han Kyung-woo, Hankyung.com reporter case@hankyung.com