Stock markets in New York fell Monday after the recent strong rally. Nevertheless, investors are preparing for a busy stock market week. About one-fifth of S&P 500 companies opened their books this week.
Large tech companies such as Apple, Google parent Alphabet, Amazon and Facebook owner Meta Platforms also provide figures. In addition, well-known companies such as McDonald’s and General Motors look at the books.
However, Wall Street is mainly looking forward to the US Federal Reserve’s interest rate decision, which begins its two-day policy meeting on Tuesday. The Fed’s interest rate decision will follow on Wednesday. A day later, the European Central Bank meets to discuss interest rates. The Fed and ECB are expected to raise interest rates further in the fight against high inflation.
Shortly after the start of trading, the Dow Jones index was 0.2 percent lower at 33,922 points. The broader S&P 500 fell 0.4 percent to 4,053 points, and the tech exchange Nasdaq lost 0.9 percent to 11,517 points. The S&P 500 is up about 6 percent for January. The Nasdaq is up nearly 11 percent since the start of the year, heading for its best January since 2001.
GE Healthcare gained 0.7 percent. The healthcare company reported quarterly results for the first time since the split from industrial conglomerate General Electric. The group saw a profit fall last quarter but expects profit growth in 2023.
Amazon (minus 1 percent), Apple (minus 0.6 percent), Alphabet (minus 1.5 percent) and Meta (minus 0.8 percent) were all lowered. On Friday, the tech companies gained up to 3 percent. That was because the Fed’s preferred measure of inflation declined in December relative to November, potentially slowing the need for the central bank to raise interest rates. That would be especially beneficial for expensive tech stocks.
Intel recorded a slight plus of 0.1 percent. However, the chip manufacturer lost more than 6 percent on Friday after disappointing quarterly figures.
Tesla fell 0.4 percent. Analysts from Berenberg increased the advice for the manufacturer of electric cars. The stock rose sharply last week after Tesla announced a record profit. Since the beginning of the year, the company, led by CEO Elon Musk, has already risen more than 40 percent in value.