Wall Street closed lower Thursday, dragged by tech and tech-adjacent megacap shares as investors digested a slew of mixed quarterly earnings and signs of economic resiliency that could encourage the Federal Reserve to keep interest rates at a restrictive level for longer than expected. All three major U.S. stock indexes ended in the red.
At last glance, roughly four in five companies were beating earnings estimates. Analysts' most recent estimates call for aggregate year-on-year S&P 500 earnings growth of 2.6%, according to LSEG. "Investors were "digesting the economic data through the lens of an aggressive Federal Reserve ... it challenges the notion that the Fed will start lowering rates in 2024," said Greg Bassuk, Chief Executive Officer at AXS Investments in New York.
Unofficially, the Dow Jones Industrial Average fell 251.83 points, or 0.76%, to 32,784.1, the S&P 500 lost 49.59 points, or 1.18%, to 4,137.18 and the Nasdaq Composite dropped 225.62 points, or 1.76%, to 12,595.61.