Wall St slips on mixed earnings, higher Treasury yields
Wall Street’s main indexes fell on Wednesday as Treasury yields rose on growing expectations that the Federal Reserve could keep interest rates higher for longer, while mixed earnings from regional banks and weakness in Tesla further dented sentiment.
Tesla Inc (TSLA.O) dropped 2.4% after the electric-vehicle maker reduced prices for a sixth time this year in the United States, ahead of its first-quarter results.
Netflix Inc (NFLX.O) slid 4.7% after the video-streaming pioneer issued a downbeat forecast.
Morgan Stanley (MS.N) declined 1.8% as the Wall Street bank reported a fall in quarterly earnings, a day after rival Goldman Sachs Group Inc (GS.N) posted a 19% drop in profit on hit to dealmaking and losses from the sale of some assets in its consumer business.
While the start of the earnings season has been largely supportive for equities, investors will closely watch updates from market heavyweights as well as consumer companies for signs of inflation and economic slowdown hurting margins.
Mixed economic data recently has fueled bets that the U.S. central bank will hike interest rates by 25 basis points in May, with traders seeing an 83% chance for such a move, as per CME Group’s Fedwatch tool.
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