- Apple, Alphabet and Amazon Earn Earnings
- Fed decision on interest rates on Wednesday
- J&J goes bankrupt after a US court rejects its talc litigation strategy.
- Index losses: Dow 0.37%, S&P 500 0.95%, Nasdaq 1.59%
NEW YORK (Reuters) – Major U.S. stock indices fell on Monday as investors turned to major events including a central bank meeting and a slew of earnings reports.
The tech sector (.SPLRCT) fell 1.7%, with most sectors down. Shares of Apple (AAPL.O), Amazon.com (AMZN.O) and Google parent Alphabet (GOOGL.O), all due to report earnings later this week, have fallen more than 1%.
More than 100 S&P 500 companies are due to report results this week, including central bank meetings in the US and Europe, as well as closely watched US employment data.
Keith Lerner, co-chief investment officer at Truist Advisory Services, said: “The market has risen significantly and trading is a little cautious heading into the week. This could be an inflection point for the whole market. There is a nature.
The Dow Jones Industrial Average (.DJI) drops 125.11 points (0.37%) to 33,852.97, the S&P 500 (.SPX) drops 38.49 points (0.95%) to 4,032.07, and the Nasdaq Composite (.IXIC) drops 184.56 points. fell. 1.59% to 11,437.15.
Rising US Treasury yields have put new pressure on tech stocks, which had rebounded in the year after a rough move in 2022.
Despite Monday’s decline, the S&P 500 was on track to record its biggest January gain since 2019.
The U.S. central bank is seen raising the Fed’s interim money rate by 25 basis points at the end of Wednesday’s two-day policy meeting, after the Fed aggressively raised interest rates in 2022 to curb sharp inflation. I’m here.
Fed Chairman Jerome Powell’s press conference will be scrutinized as to how far interest rates could rise and how long they can stay elevated. Meanwhile, the European Central Bank is expected to make another big rate hike on Thursday.
Investors are also eyeing earnings reports amid concerns that the economy may be facing a recession. More than 140 companies have reported so far, according to Refinitiv IBES, and S&P 500 earnings are expected to fall 3% in the fourth quarter compared to the same period last year.
In company news, shares of Johnson & Johnson (JNJ.N) plunged into the healthcare giant’s strategy of using bankruptcy to settle a multi-billion dollar lawsuit over allegations that talc products cause cancer. fell more than 3% after it was dismissed by a federal appeals court.
Losers outnumber gainers on the New York Stock Exchange by a ratio of 1.81 to 1. Losers dominated on the Nasdaq with a ratio of 1.73 to 1.
The S&P 500 hit five 52-week highs, but no new lows. The Nasdaq Composite posted 51 new highs and 14 new lows.
Reporting by Lewis Krauskopf, New York; Reporting by Shreyashi Sanyal and Johann M Cherian, Bengaluru Editing by Anil D’Silva and Matthew Lewis
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