Stocks tumbled on Wednesday as investors cashed in some profits following the market’s recent hot streak, and FedEx dragged the S&P 500 lower.
The Dow Jones Industrial Average slid 475.92 points, or 1.27 per cent, to 37,082.00. The Nasdaq Composite was lower by 1.50 per cent to 14,777.94. Both indexes ended a nine-day advance, and they had their worst session since October.
The S&P 500 declined 1.47 per cent to 4,698.35, marking its worst day since September.
FedEx was the biggest laggard in the S&P 500, losing 12 per cent. The package delivery giant issued a disappointing revenue outlook for the fiscal year, and reported fiscal second-quarter results that fell short of expectations on the top and bottom lines. The Dow Jones Transportation Average, a price-weighted index of 20 stocks that includes FedEx, fell more than 2 per cent. Google-parent Alphabet was among the best performers in the S&P 500, reaching a new 52-week high during the session; it gained 1.2 per cent.
The pullback comes after a robust session Tuesday when the Dow and the Nasdaq Composite both registered nine straight days of gains. Since the Oct. 27 closing low and through Tuesday, the Dow Industrials climbed 15.9 per cent, and the S&P 500 jumped 15.8 per cent. The Nasdaq Composite had gained 19.1 per cent.
All three major averages remain on pace for a winning December and 2023 as investors look forward to proposed rate cuts from the Federal Reserve in the new year.
The S&P 500 has risen 2.9 per cent this month and 22 per cent year to date. The Dow has added 3.2 per cent in December and 11.9 per cent in 2023. The Nasdaq is up by 3.9 per cent on the month and 41 per cent on the year, putting it on pace for its best year since 2020.
Turning to US sectors, all closed lower overnight. Consumer Staples was the worst performer, whilst Communication Services recorded the fewest losses.
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The SPI futures are pointing to a 1 per cent fall.
One Australian dollar at 8:30 AM was buying 67.32 US cents.
Gold lost 0.40 per cent. Silver gained 0.43 per cent. Copper lost 0.42 per cent. Oil fell 0.22 per cent.
Figures around the globe
European markets closed higher. London’s FTSE gained 1.02 per cent, Frankfurt lost 0.07 per cent, and Paris closed 0.12 per cent higher.
Turning to Asian markets, Tokyo’s Nikkei gained 1.37 per cent, Hong Kong’s Hang Seng added 0.66 per cent while China’s Shanghai Composite closed 1.03 per cent lower.
The Australian share market closed 0.65 per cent higher at 7,537.88.
Hancock & Gore Ltd (ASX:HNG)
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.
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