Traders on the floor of the NYSE, June 30, 2023.
Source: NYSE
The S&P 500 fell Wednesday as investors weighed a batch of corporate earnings from major technology names and geared up for the Federal Reserve’s latest interest rate decision.
The broader market index dipped 0.2%, and the Nasdaq Composite pulled back 0.4%.
Meanwhile, the Dow Jones Industrial Average was little changed after a 12-day advance. If the Dow closes higher Wednesday, it would be the best winning streak for the 30-stock index since January 1987 — the last time it was higher for 13 straight days.
The longest winning streak ever for the Dow was in June 1897, when the index rose for 14 consecutive sessions. That was roughly one year after the Dow was incepted in May 1896.
Google-parent Alphabet rose more than 6% as cloud revenue growth helped propel the company to a better-than-expected quarter. On the other hand, Microsoft slid more than 3% after reporting slowing cloud revenue growth.
Outside of Big Tech, Snap tumbled 19% after giving weak guidance for current-quarter performance.
Elsewhere, Dow component Boeing gained more than 5% after reporting a second-quarter beat following a rise in commercial aircraft deliveries. Meta, Chipotle and Mattel‘s earnings are slated to drop after the market closes.
Fed decision looms
A slate of recent data suggesting easing inflation has investors riding a wave of optimism the Federal Reserve will be done hiking rates after its July meeting. The CME Group’s FedWatch Tool is showing a 98% likelihood policymakers will raise rates by a quarter percentage point at the conclusion of their Wednesday meeting. However, some market participants urge caution against the view the central bank is “one and done.”
“[Investors] should beware of becoming too optimistic that today will mark the end of the rate-hiking cycle, in our view,” UBS’ Solita Marcelli said in a Wednesday note.
Wall Street notched a winning day Tuesday. After eking out a gain just shy of 0.1%, the Dow clinched its 12th-straight winning session, a streak not seen for the blue-chip average since February 2017. The S&P 500 and Nasdaq Composite finished about 0.3% and 0.6% higher, respectively.
— CNBC’s Gina Francolla contributed to this report.