Stocks fell on Wednesday after the latest batch of corporate earnings intensified concerns over how some of the largest U.S. companies are faring as rates rise and recession fears grow.
The Dow Jones Industrial Average declined by 270 points, or 0.8%. The Nasdaq Composite fell 1.8%, and the S&P 500 dropped 1.26%.
Shares of Microsoft dropped 3%despite exceeding analysts’ estimates after it offered lackluster guidance on its earnings call. Boeing declined 2%following a top-and bottom-line miss.
Investors are bracing for more high-profile corporate earnings this week as fears of a recession mount. So far, more than 70 S&P 500 companies have reported fourth-quarter earnings, and 65% of them posted stronger-than-expected results, according to Refinitiv.
“With the bulk of earnings still in front of the market, the question as to whether the shift towards growth being signaled by recent rallies is warranted could be answered by upside earnings surprises and solid guidance,” said Quincy Krosby, chief global strategist at LPL Financial.
Tesla, Boeing, IBM and AT&T are among the companies slated to post numbers on Wednesday.
The moves followed a three-day winning streak for the blue-chip Dow. All three major averages are up at least 1% week to date.