Stocks continued to fall on Wall Street Wednesday as investors review the latest corporate earnings and prepare for higher interest rates. The major indexes all set new lows for the year, with technology stocks’ weakness again giving direction to the broader market, the AP reports. The S&P 500 fell 44.35 points, or 1%, to 4,532.76, with 77% of stocks in the benchmark index losing ground . The Dow Jones Industrial Average fell 339.82, or 1.2%, to 35,028.65. The tech-heavy Nasdaq fell 166.64, or 1.1%, to 14,340.26 and is now 10.7% below the all-time high it set on Nov. 19. Stocks have slid in January as investors gauge how rising inflation will impact businesses and consumers, along with the Federal Reserve’s next move on interest rate policy.
"We’ve seen some givebacks from the returns we got last year," said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors. "What we're seeing is that the market is resetting now." A mix of travel-related companies and automakers fell. Ford slumped 7.9% following news that it's recalling about 200,000 cars in the US to fix a problem that can stop the brake lights from turning off. Financial companies and technology stocks weighed down the broader market. Apple fell 2.1% and chipmaker Nvidia fell 3.2%.
Investors are busy reviewing the latest round of corporate earnings. Health insurer UnitedHealth Group rose 0.3% after reporting encouraging financial results. Bank of America rose 0.9% after reporting a jump in profits that beat analysts' forecasts. Household and consumer goods company Procter & Gamble rose 3.8% after also reporting strong financial results. The maker of Dawn dish detergent and other products reported strong results as it passed along higher costs to consumers. Wall Street is closely watching the latest round of results to gauge whether inflation is cutting into profit margins for companies and to see whether consumers are accepting the higher prices without cutting back on spending.
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