Nasdaq, S&P 500 Slip Ahead Of Fed Meeting, Regional Banks Sink After NYCB Disappoints: What's Driving Markets Wednesday?
Volatile Day on Wall Street as Tech Stocks React to Disappointing Earnings Before FOMC Meeting

Published On: January 31, 2024 1:08 pm

Tech Stocks React to Disappointing Earnings

It’s a turbulent day on Wall Street as tech stocks respond to underwhelming quarterly earnings just before the much-awaited Federal Open Market Committee (FOMC) meeting.

As the FOMC meeting approaches (scheduled for 2:00 p.m. ET on Wednesday, Jan. 31), the Nasdaq 100, which heavily features tech stocks, experienced a 1.4% dip. This marked its most challenging session since early January.

Market Breakdown

Alphabet Inc. (GOOGL) plunged 6% due to disappointing results for the quarter ending in December.
Advanced Micro Devices Inc. (AMD), a significant player in the artificial intelligence sector, also fell on weaker-than-expected results.
The broader market, as indicated by the S&P 500 index, declined 0.9%.
The pace of job growth decelerated from 158,000 in December to 107,000 this month (below the anticipated 147,000), according to the ADP National Employment Report.
The CBOE Volatility Index, also known as the market fear gauge or VIX, surged 8%. Bonds gained ground as investors adopted a more cautious approach. Treasury yields dropped across all key maturities, with the 10-year yield falling below the 4% mark.
The popular iShares 20+ Year Treasury Bond ETF (TLT) soared 1%.
On the banking front, the SPDR S&P Regional Banking ETF (KRE) plummeted 3.7%, tracking for the worst session since May 2023, following disappointing results from New York Community Bancorp Inc. (NYCB).

Performance In Major Indices, ETFs

Major Indices	Price	%
Dow Jones	38,466.45	0.0%
Russell 2000	1,980.19	-0.8%
S&P 500	4,885.26	-0.8%
Nasdaq 100	17,252.38	-1.3%
CBOE VIX	14.38	8.0%

The SPDR S&P 500 ETF Trust (SPY) decreased by 0.9% to $486.56, the SPDR Dow Jones Industrial Average (DIA) remained steady at $384.46, and the tech-heavy Invesco QQQ Trust (QQQ) fell 1.4% to $419.13, according to Benzinga Pro data.

Wednesday’s Stock Movers

Alphabet Inc. fell 6.6% on its worst session in three months, despite surpassing revenue and earnings estimates, the tech giant delivered weaker-than-expected advertising revenue.
Advanced Micro Devices Inc. fell 3.1% after broadly matching the Street’s earnings estimate but issuing a first-quarter 2024 guidance below expectations. Chipmaker peers such as NVIDIA Corp. (NVDA) and Broadcom Inc. (AVGO) fell 1.9% and 2% respectively.
Microsoft Corp. (MSFT) fell 1.4%, despite reporting stronger-than-expected results last quarter and receiving several price-target boosts from sell-side analysts.
New York Community Bancorp Inc. plummeted 35% on its worst day since the company went public in 1993. The regional bank reported a loss last quarter, significantly disappointing estimates of a positive net income, and revenue also surprised to the downside.
Boeing Company (BA) rallied nearly 7% after reporting stronger-than-expected results, with the company CEO prioritizing the need to address safety and quality issues above all during the call with investors.