U.S. stocks saw a decline in a volatile Wednesday session as investors reacted to the Federal Reserve’s firm stance on interest rates and disappointing early earnings reports. Significant losses were seen in shares of Travelers (TRV.N), which plunged 7.41% after missing first-quarter profit expectations, contributing to the S&P 500’s and Dow Industrials’ downturn. Similarly, Prologis (PLD.N) and Abbott Laboratories (ABT.N) fell by 7.19% and 3.03%, respectively, further weighing on the market.
Despite a robust rally in late 2023 and early 2024, equities have been under pressure, with the S&P 500 enduring its fourth consecutive session of losses, its longest streak in over four months since January 4. Market sentiment has cooled on rate cut prospects, as Fed officials, including Chair Jerome Powell, have signaled a continued need for a restrictive monetary policy to combat persistent inflation concerns.
The market’s response was mixed, with the Dow Jones Industrial Average dropping by 45.66 points to 37,753.31, the S&P 500 by 29.20 points to 5,022.21, and the Nasdaq Composite by 181.88 points to 15,683.37. Despite these declines, some sectors witnessed gains, such as United Airlines (UAL.O), which surged 17.45% after upbeat quarterly projections, boosting the NYSE Arca airline index by 3.82%. Conversely, JB Hunt and U.S. Bancorp reported disappointing earnings, reflecting the broader market’s cautious sentiment amid fluctuating expectations for the Fed’s future monetary policy actions.
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