Stocks sold off on Wednesday after the latest batch of corporate earnings intensified concerns that some of the largest US companies are struggling as interest rates rise and recession fears grow.
The Dow Jones Industrial Average fell 442 points, or 1.3 percent. The Nasdaq Composite fell 2.3%, and the S&P 500 fell 1.66%.
“If the company is bearish in terms of its future, why should investors be optimistic,” said Adam Sarhan, CEO of 50Park Investments. “That’s very much the message we’ve been getting from earnings season so far.”
Investors bought stocks as the period approached with better-than-expected results as companies reset expectations and lowered expectations. But he said reports received so far across sectors have mostly dashed those hopes, with many companies sharing bleak views.
Investors are preparing for more notable corporate earnings this week as recession fears persist, with Tesla And ibm Among the companies slated to post numbers after the bell. So far, more than 90 S&P 500 companies have reported fourth-quarter earnings, and 68% of them posted stronger-than-expected results, according to FactSet.
Wednesday’s moves followed a three-day winning streak for the blue-chip Dow. All three major averages are trading flat or slightly lower during the week.