Wall Street opened lower on Wednesday, extending its decline from recent record highs. The S&P 500 was down 0.3%, continuing a quiet period since reaching a record peak last week. The Dow dropped 217 points, or 0.5%, while the Nasdaq composite fell 0.5%. Treasury yields edged lower in the bond market following a report indicating that the U.S. economy likely grew slightly slower at the end of 2023 than previously estimated. Boston Beer, maker of Samuel Adams, saw its stock slide after reporting a larger-than-expected loss, primarily due to declines in its hard seltzer brand, Truly.
Ahead of a second look at economic growth in the final quarter of 2023 and more corporate financial results, Wall Street futures indicated a lower opening. Futures for the S&P 500 lost 0.4%, while futures for the Dow Jones Industrial Average fell around 0.3%.
Despite a growing consensus that the Federal Reserve is unlikely to cut benchmark interest rates until late spring or summer, markets have been mixed this week but are on track to end February with gains.
The government is set to release its second estimate on the performance of the economy in the final quarter of 2023. The initial estimate showed strong economic growth, with a 3.3% expansion, driven by robust consumer spending.
In premarket trading, Boston Beer shares dropped more than 11% after reporting a wider fourth-quarter loss than expected. On the positive side, eBay jumped 5.3% after surpassing Wall Street’s fourth-quarter sales and profit targets.
In European midday trading, France’s CAC 40 edged up 0.1%, Germany’s DAX ticked down 0.1%, and Britain’s FTSE 100 tumbled 0.7%. In Asian trading, Japan’s benchmark Nikkei 225 edged 0.1% lower to 39,208.03. Shares in Hong Kong and Shanghai declined, despite a budget announcement in Hong Kong aimed at boosting tourism and the property industry. The Hang Seng in Hong Kong slipped 1.5%, while the Shanghai Composite sank 1.9%.
China’s largest private property developer, Country Garden, announced it is facing a liquidation petition after failing to repay a term loan facility worth 1.6 billion Hong Kong dollars ($204.5 million).
Australia’s S&P/ASX 200 was little changed at 7,660.40 after the Australian Bureau of Statistics reported that the country’s inflation rate held at a two-year low in January, raising hopes that the Reserve Bank may cut its benchmark interest rate. South Korea’s Kospi gained 1% to 2,652.29, while Thailand’s SET was down 0.8%.
In other trading, U.S. benchmark crude oil lost 79 cents to $78.08 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, shed 77 cents to $81.89 per barrel. The U.S. dollar rose to 150.70 Japanese yen from 150.51 Japanese yen, while the euro fell to $1.0810 from $1.0843.
On Tuesday, the S&P 500 added 0.2% but was just off its all-time high set last week. The Dow Jones Industrial Average dipped 0.2%, and the Nasdaq composite rose 0.4%.
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