Tesla Shares Drop 3.4%, Affecting Consumer Discretionary Stocks
Tesla Inc's shares fell 3.4% after the automaker raised its capital expenditure forecast for 2023 to boost output, negatively impacting consumer discretionary stocks.
Tech Giants Expected to Report Results This Week
Alphabet (NASDAQ: GOOGL) Inc, Microsoft Corp (NASDAQ: MSFT), Amazon.com Inc (NASDAQ: AMZN), and Meta Platforms Inc (NASDAQ: META), which make up over 14% of the S&P 500's value, are scheduled to report results this week. A rally in these stocks has supported Wall Street this year, and investors are waiting to see if gains can continue amid a gloomy economic outlook.
Strong Earnings May Bolster Tech Stocks Rally
Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said it's a make-or-break week for tech stocks, with continued rally depending on positive earnings results.
U.S. Stocks Hold Steady Despite Banking Crisis Concerns
U.S. stocks have mostly remained stable during the earnings season, thanks to stronger-than-expected results from big banks, easing worries about contagion from the March banking crisis.
Upcoming Economic Data May Impact Market Direction
Economic data scheduled for release this week include early readings of first-quarter U.S. GDP, personal consumption expenditure index (PCE) for March, and consumer confidence numbers for April. Mixed economic numbers last week led to bets of a 25-basis-point rate hike by the Fed in May.
U.S. Treasury Yields Ease Amid Debt Ceiling Concerns
U.S. Treasury yields have eased following signs of slowing inflation and economic activity, but investors remain concerned about a potential standoff over the U.S. debt ceiling. House of Representatives Speaker Kevin McCarthy said the House would vote on his spending and debt bill this week.
Defensive Sectors See Gains Amid Market Volatility
At 11:44 a.m. ET, the Dow Jones Industrial Average was down 52.81 points, the S&P 500 was down 12.52 points, and the Nasdaq Composite was down 98.14 points. Defensive sectors, healthcare, utilities, and consumer staples were among the few gainers.