Wall Street falls sharply awaiting balance sheets from Apple, Microsoft and Google

Wall Street falls sharply awaiting balance sheets from Apple

US stock indices were down nearly 2%, from record highs before earnings reports from Wall Street’s most valuable companies and in the run-up to the two-day Federal Reserve meeting.

US stock indices were down sharply from record highs on Tuesday ahead of earnings reports from Wall Street’s most valuable companies and in the run-up to the two-day Federal Reserve meeting.

The Dow Jones Industrial Average was down 0.6%; while the S&P 500 index lost 0.9%; and the Nasdaq Composite Index fell 1.9%.

Of the firms that make up the S&P 500, 124 companies have reported profits so far and 88.7% of them have beaten analyst estimates, according to Refinitiv data.

More than a third of the companies that make up the S&P 500 report quarterly results this week, including AppleMicrosoft, Amazon and Google’s parent Alphabet, the top four US companies by market value.

Apple, Alphabet and Microsoft, which were trading slightly lower or flat on Tuesday, will report results after the market close, while Amazon will report earnings on Thursday.

“Markets could trade slightly until we get some of those results… they’re generally more reactive than proactive,” said Randy Frederick, managing director of trading and derivatives at the Schwab Center for Financial Research.

On Tuesday, government data on capital goods orders that fell short of analyst estimates hurt market sentiment, as there is nervousness among investors over this week’s Fed meeting, which could signal when the central bank will begin to withdraw its monetary stimulus.

The Fed will issue its monetary policy statement on Wednesday afternoon.

Among the highlights, shares of electric car maker Tesla Inc fell 1.5% as concerns that production would be hurt by a semiconductor shortage offset initial optimism about its better-than-past second-quarter earnings. expected.

The shares of Chinese companies listed in New York amplified their losses, as fears persisted about more government regulations in Beijing that have caused a strong sell-off of technology on the Shanghai and Hong Kong stock exchanges. Alibaba and Baidu shares lost around 3.3% and 0.8%, respectively.