S&P 500 Pulls Back As Big Tech Stocks Retreat

The post-market session saw Meta Stock test multi-year lows.

The major tech names caused the S&P 500 to lose momentum and fall towards the support at 3835 after reaching highs near the resistance at 3885.

Following poor earnings results that were announced yesterday after the market closed, Alphabet was down 9% and Microsoft was down 7%.

After falling short of analyst expectations and posting an extra $766 million charge on the purchase of two new U.S. presidential aircraft, Boeing saw its share price decline by 8%.

The poor results from the top technology giants outweighed the benefits of reduced Treasury rates and a weaker US currency. As traders gambled that the Fed may be obliged to be less hawkish, the yield on 10-year Treasuries tried to settle down below the 4.00% mark.

It should be emphasized that the Bank of Canada previously increased the rate by 50 basis points, against the 75 basis points predicted by analysts, after determining that aggressive rate rises were placing too much pressure on the economy. The world markets benefited somewhat from this action.

Energy equities including Hess, Halliburton, ConocoPhillips, and others were climbing on a robust recovery in the oil markets as top tech firms came under pressure.

Traders focused on the quarterly report from Meta during the post-market session. Meta announced profits of $1.64 per share and sales of $27.71 billion, exceeding analyst expectations for revenue but falling short of them for profitability. The business said that although average pricing per ad fell by 18%, ad impressions rose by 17% year over year. On an annualized basis, revenue dropped by 4%. The news was unpopular with traders, and Meta is down 12% in the after-market session. The outcomes of Meta might significantly depress market sentiment tomorrow.

Ford reported a loss of $0.21 per share and sales of $39.4 billion. The $2.7 billion non-cash impairment of Ford's investment in Argo AI, which was creating L4 advanced driver assistance systems, was what caused the loss. Supply problems and higher-than-expected supplier payments also had an influence on Ford's financial performance. In the session after the market close, the stock fell by nearly 1%.