The Magnificent Seven Punish Wall Street – Stock Exchange

Wall Street’s major indexes closed in the red, dragged down by a combination of lower-than-expected quarterly results, as well as data from the North American economy that showed resilience and could lead the Federal Reserve to keep interest rates high for longer.The seven companies, known as the “Magnificent Seven” – Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla and Meta – were subjected to severe penalties.
Investors also evaluated the results of many companies, namely: GoalWhich presented calculations on Wednesday after the end of the session, in addition to the US GDP.

The S&P 500 index, a benchmark for the region, fell 1.18% to 4,137.18 points, renewing its May lows. The Dow Jones Industrial Average fell 0.76% to 32,784.30 points. The tech-heavy Nasdaq fell 0.38% to 12,771.95 points, 10% below its year-high in July. All indicators are heading towards weekly losses.

North American economy It grew by 4.9% in the third quarter, the highest pace since the last three months of 2021 and well above the 4.5% that economists had expected, defying fears of an ongoing recession since 2022.

Among the major market movements, Meta – The value of the parent company of Facebook, Instagram and WhatsApp fell by 3.73% to $288.35, falling to its lowest levels in almost four months.

Although the technology company beat earnings and revenue expectations, warning that the current quarter was weaker in terms of advertising put pressure on the company. Spending on the division that explores virtual and augmented reality technologies has also worried investors.

IBM shares, which filed third-quarter accounts on Wednesday, rose 4.87% to $143.76, after beating analysts’ estimates in terms of profits and revenues. The good results were supported by increased demand for software.

Alphabet shares fell 2.65% to $122.28, after losing 9.51% on Wednesday, the worst day since March 2020, affected by the results of the “cloud” sector, which achieved the fastest slow growth over the past 11 months.

Among the listed companies that submitted their accounts today, Hasbro, the manufacturer of Transformers, fell 11.65%, after it lowered its annual revenue expectations. The stock of Mattel, the manufacturer of Barbie dolls, fell by 7.61%, after the company revealed expectations of a decline in demand, even with the crucial holiday season approaching.

“We’re seeing a lot of pressure from a range of results from companies that fell short of expectations in terms of investor expectations, especially from companies that generated a lot of confidence in the stock markets over the course of the year,” said Greg Bassuk, an analyst at AXS Investments. .

On the geopolitical front, the market continues to focus on the Middle East, after Israeli Prime Minister Benjamin Netanyahu said he is preparing for a ground attack on Gaza, which could be one of several.

The market was also evaluating the words of Janet Yellen, US Treasury Secretary, who stated that the recent rise in US sovereign bond yields is a reflection of the strength of the economy and not the health of public finances.