Us Stocks Turn Red

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Us Stocks Turn Red

Us Stocks Turn Red As Focus Shifts To Corporate Earnings

As Wednesday's session is coming to a close, not everything is all right with the US stocks. Up ahead, a lot of companies will be releasing their corporate earnings, followed by comments from the Fed.

With these 2 high volatility events, it is only natural for the US stocks to take the back foot. The DJIA is down by 0.1% (25 points), while the S&P 500 is down by 0.4% (20 points). The Nasdaq index is leading the charge with a -0.6% decline or around 100 points.

Rate Cuts Expected At September Meeting

As of late, there was a build-up of optimism that the Fed will go through with interest rate cuts at the next meetings. However, this has been dented by comments from various Fed officials. According to these officials, the rates will likely remain the same for the near term.

Fed Neel Kashkari believes that high interest rates are the need of the hour because of sticky inflation. As a result, the rates will remain the same for the rest of the year 2024. This means the month of the rate cuts is now September instead of June and July.

If we look at individual stocks, the biggest loser of the day was Uber Technologies (UBER), which lost 8% during the day. The decline in UBER came after the company announced a quarterly loss.

Conversely, Lyft, which is a major rival of UBER, announced an uptick in gross bookings, which provided a 4% boost to the stock.

Reddit, a famous social media site that has recently been listed on the US stock market, gained an astonishing 8% on Wednesday. The company announced earnings for the quarter, which were a lot stronger than forecasted.

Meanwhile, Rivian Automotive (RIVN) declined by 8% after announcing a loss for the Q1. Similarly, a 2% decline was seen in the Electronic Arts (EA) stock on weak guidance and earnings.

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