Wall Street slides lower, Netflix falls; ASX set to retreat
AT&T fell 1.9 percent after posting a profit that only met analysts’ expectations, while Texas Instruments fell 5.6 percent after its profit fell slightly short of forecasts.
On Wall Street’s winning side was Intuitive Surgical, which sells robot-assisted surgical systems. It rose 13.9 percent in the latest quarter after reporting better profits than analysts expected. Boston Scientific also rose 4 percent after beating analysts’ profit expectations.
Capital One Financial rose 1.5 percent and Western Alliance Bancorp rose 3.2 percent after its own earnings updates that beat analysts’ expectations. The Western Alliance’s report was particularly welcomed last week as it helped shake confidence in the sector. This is one of the few banks warning of potential bad loans on its books, possibly due to fraud.
Meanwhile, Beyond Meat rocked sharply on a wild Wednesday. Shares, which rose up to 112 percent in the morning, erased all these and finished with a decrease of 1.1 percent. Amidst the meme stock is still up 454.5 percent for the week so far.
The maker of plant-based meat alternatives was the fund’s largest holding as of Tuesday, trading on the Roundhill Meme Stock Exchange. The ETF holds stocks that investors are piling into because they hope to ride a wave of momentum, almost regardless of how or even what the businesses are doing.
Overall, the S&P 500 fell 35.95 points to 6,699.40. Dow Jones index decreased by 334.33 points to 46,590.41, and Nasdaq composite index decreased by 213.27 points to 22,740.40 points.
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Gold momentum continued to move in the opposite direction, with gold falling 1.1 percent to $4,065.40 per ounce. This comes after Tuesday’s 5.3 percent drop took it to a record high.
Many of the factors that attracted buyers to gold this year are still present. The expectation on Wall Street is still that the Fed will cut interest rates over the next year. Concerns are growing that inflation will remain high. And the alarming mountain of debt the United States and other governments around the world have accumulated is only growing.
But no investment rises in price forever, and criticism was mounting that gold’s price had gone too far, too fast, after rising more than the U.S. stock market. The price of gold is still up 56 percent for the year so far.
In foreign stock markets, indices across Europe and Asia were mixed.
In London, the FTSE 100 Index rose 0.9 percent after the UK inflation report raised hopes of a new cut in interest rates next month. South Korean Kospi made one of the world’s biggest gains with an increase of 1.6 percent. However, the indices fell by 0.9 percent in Hong Kong and 0.6 percent in Paris.
In the bond market, the yield on the 10-year Treasury note fell from 3.98 percent to 3.95 percent at the end of Tuesday.
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The Market Summary newsletter is a summary of the day’s transactions. Let’s each take ittoday afternoon.
