US: Stocks mostly fall on disappointing tech earnings

THE tech-rich Nasdaq suffered a drubbing on Wednesday following disappointing results from Microsoft and Google parent Alphabet, but the Dow ended flat on hopes for a moderation in monetary policy.

Shares of Microsoft and Alphabet both dropped more than 7 per cent after Microsoft offered a lackluster forecast, while Alphabet was hurt by a pullback in online advertising.

Dow member Boeing was another big loser, slumping nearly 9 per cent as it reported a hefty loss due to rising costs in its defence contract business.

The Dow Jones Industrial Average managed to finish flat at 31,839.11.

The broad-based S&P 500 dropped 0.7 per cent to 3,830.60, while the Nasdaq tumbled 2.0 per cent to 10,970.99.

Stocks had risen the last three days on greater confidence that the Federal Reserve will soon pivot from its policy of aggressive interest rate hikes to counter inflation.

That view was bolstered Wednesday by the latest retreat in the yield of the 10-year US Treasury note and by the Bank of Canada's decision to raise interest rates by 0.5 percentage point, less than expected.

"Financial markets closely watched the Bank of Canada decision that delivered a clear message that they are getting close to being done with tightening," said Oanda's Edward Moya. "Wall Street is hoping the Fed will follow the Bank of Canada's lead in expecting inflation to ease further by year end."

Among individual companies, autonomous car technology company Mobileye surged 38 per cent in its Wall Street debut following a spinoff from Intel. AFP


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