The stock market opened lower on Wednesday, with weakness in technology companies continuing to weigh on Wall Street. The S&P 500 was down 0.3% in early trading, while the tech-heavy Nasdaq dropped 0.5% and the Dow Jones Industrial Average slipped 0.4%.
One of the notable losers was Palo Alto Networks, a network security company, which saw its stock price plummet by a quarter after issuing forecasts for future billings that fell short of analysts’ expectations. On the other hand, Amazon’s stock rose following an announcement that it would be added to the Dow Jones Industrial Average, replacing Walgreens Boots Alliance, which saw its stock price fall.
Investors are awaiting Nvidia’s quarterly earnings release, which is expected to serve as a key indicator for the AI chip revolution. Nvidia’s report, due later in the day, will be closely watched, especially in regions like Hong Kong, China, and Taiwan, which contribute significantly to the company’s revenues.
In premarket trading, Nvidia’s stock slipped about 1.5% following a 4.4% drop on Tuesday. Despite this, Nvidia remains the S&P 500’s biggest gainer so far this year, with a rise of about 40%.
Another premarket loser was security software maker Palo Alto Networks, which saw its stock price slide by 24% after cutting its 2024 sales and billings guidance.
Meanwhile, HSBC Holdings reported record profit before tax of $30.3 billion in 2023, but fell short of analysts’ expectations due to an impairment charge related to an investment in a Chinese bank. HSBC’s Hong Kong-listed shares fell 3.8% in afternoon trading.
Looking ahead, the Federal Reserve is set to release the minutes from its most recent meeting, where it opted to leave its benchmark lending rate unchanged. Investors are now looking to the government’s monthly report on personal consumption and expenses, due next week, for further updates on inflation.
Overall, more than 80% of companies in the S&P 500 have reported their latest results, with analysts expecting overall earnings growth of about 3.3% for the fourth quarter and forecasted earnings growth of about 3.6% for the current quarter.
In international markets, Hong Kong’s Hang Seng gained 1.6%, driven by gains in its Tech Index, while Japan’s Nikkei 225 lost nearly 0.2%. Australia’s S&P/ASX 200 slipped 0.7%, and South Korea’s Kospi lost 0.2%.
In Europe, Germany’s DAX added 0.4%, the CAC 40 in Paris gained 0.2%, and London’s FTSE 100 was down 0.8%.
In commodity markets, U.S. benchmark crude lost 18 cents to $76.86 a barrel, while Brent crude gave up 18 cents to $82.16 per barrel. The U.S. dollar was largely unchanged against the Japanese yen and the euro.
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