U.S. stock markets fell across the board ahead of Big Tech earnings reports released after the closing bell.
On Wednesday, the Dow Jones fell 0.17%, the S&P 500 dropped 0.33%, and the Nasdaq decreased by 0.56% on the New York Stock Exchange.
The decline is attributed to investor caution as they awaited earnings reports from Microsoft and Meta, Facebook’s parent company, which were scheduled for release immediately after the market closed.
In the semiconductor category, AMD, which released its earnings the previous day, plummeted over 10% due to disappointing results, dragging competitor NVIDIA down by 1.36%. Most semiconductor stocks were down, with the Philadelphia Semiconductor Index closing with a sharp decline of 3.35%.
Electric vehicle stocks also declined, with Tesla down 0.76%.
Super Micro Computer, an AI server company, nosedived 32.69% amid allegations of accounting fraud.
Meanwhile, economic indicators showed mixed results and had a limited impact on the market. The preliminary estimate for third-quarter GDP growth was 2.8%, falling short of the Dow Jones forecast of 3.1%. U.S. GDP figures are released in three stages: preliminary, revised, and final estimates.
In contrast, employment data showed unexpected strength. According to ADP’s October report on private sector employment, private job creation surged to its highest level in over a year.