NEW YORK (AP) — US stocks drifted lower Wednesday to edge a bit further from their all-time highs.
The S&P 500 slipped 8.42 points, or 0.2 per cent, to 5,069.76, continuing its quiet and listless run since setting a record last week. The Dow Jones Industrial Average dipped 23.39, or 0.1 per cent, to 38,949.02. The Nasdaq composite sank 87.56, or 0.5 per cent, to 15,947.74 a day after pulling within 0.1 per cent of its record set in 2021.
Treasury yields also eased in the bond market after a report said the US economy likely grew a touch slower at the end of 2023 than earlier estimated. The growth was nevertheless still solid, as the economy continues to defy expectations of a recession despite high interest rates meant to bring down inflation.
A 1.3 per cent drop for Nvidia and 1.8 per cent slump for Google’s parent company, Alphabet, were two of the heaviest weights on the market. They’re among a small group of Big Tech stocks that have been disproportionately responsible for the S&P 500’s run to records.
Such concentration in the market can be a concerning signal, according to Scott Wren, senior global market strategist at Wells Fargo Investment Institute. Broad gains among a wide variety of stocks are typically a more favourable sign that the market’s strength is sustainable.
Bumble tumbled 14.8 per cent after it reported weaker results for the latest quarter than analysts expected. The dating and friend-making app company, which recently revamped its leadership team, also gave a forecast for revenue this upcoming year that fell short of analysts’ expectations.
Urban Outfitters dropped 12.8 per cent after the retailer reported weaker results than expected. The company, which also runs Anthropologie stores, said sales are continuing to weaken at its Urban Outfitters locations.
Helping to limit the market’s losses was eBay, which rose 7.9 per cent after reporting stronger results than analysts expected. Axon Enterprise, the company that sells Tasers, body cameras and other equipment, also turned in a better-than-expected profit report, and its stock jumped 13.8 per cent.
Coinbase gained 0.8 per cent after rising more earlier in the day to continue its strong run as bitcoin’s price keeps rallying. New exchange-traded funds that make investing in bitcoin easier have raised interest in the cryptocurrency, with BlackRock’s iShares Bitcoin fund alone quickly growing to USD7 billion in assets.
Bitcoin’s price briefly topped USD64,000 Wednesday for the first time since 2021. It’s pulling closer to its record of nearly USD69,000 after rising more than 40 per cent so far this year.
Coinbase’s CEO, Brian Armstrong, apologised to customers during the day for issues they encountered because the company was “dealing with a LARGE surge of traffic” as bitcoin’s price soared. The company said some users may have seen a zero balance across their accounts and had errors in buying and selling.
Beyond Meat surged 30.7 per cent even though it reported much weaker results for the latest quarter than expected. Its revenue was slightly better than forecast after falling less than expected, and it said its profitability will likely increase through 2024.
Agilent Technologies gained 3.4 per cent for one of the bigger gains in the S&P 500 after beating forecasts for both profit and revenue.
In stock markets abroad, indexes fell across much of Asia and Europe.
Stocks fell 1.9 per cent in Shanghai and 1.5 per cent in Hong Kong. China’s largest private property developer, Country Garden, said Wednesday it’s facing a liquidation petition after failing to repay a term loan facility worth HKD1.6 billion (USD204.5 million). The first hearing in the case is scheduled for May 17.
The move comes after China Evergrande, the world’s most heavily indebted real estate developer, was ordered to undergo liquidation following a failed effort to restructure USD300 billion in late January.
In the bond market, the yield on the 10-year Treasury slipped to 4.26 per cent from 4.31 per cent late Tuesday.
