The fragile optimism did not last for long on Wall Street. The stock market is facing another sell-off today. InstaForex analysts are ready to shed light on marker developments today.

The glitch on the New York Stock Exchange yesterday disrupted trading since opening. The benchmark stock indices closed mixed on Tuesday.The Dow Jones was the only index to log a modest growth of 104 points or 0.31%. The Nasdaq slipped by 0.27%. The S&P 500 closed almost flat at about 4,016.
The major stock indices opened today on a pessimistic note. Futures of Wall Street indices traded in the red in the New York pre-market. Pessimism could escalate after the opening bell. If the S&P 500 fails to settle at 3,980, it is running the risk of falling to 3,910. The upper border of the corridor is found at 4,020.
On Tuesday, investors took little notice of mixed corporate reports, being scared by the glitch on the New York Stock Exchange which triggered wild price swings of some blue-chip stocks, thus playing havoc with markets.
All in all, more than 250 stocks suffered from the error. For example, Morgan Stanley closed at 97.13 dollars on Monday and slumped by 13% to 84.92 dollars on Tuesday. Wall Fargo’s shares also plummeted by 15%. On the other hand, Wallmart shares jumped by 12% to 159.88 dollars apiece.

Among other companies which incurred losses were ExxonMobil, McDonalds, and 3M. The US Securities and Exchange Commission is investigating the issue.

The exact amount of losses is not clear yet, but brokers and retail traders must have incurred huge losses. The stocks listed on the New York Stock Exchange are traded on all 16 stock markets across the US. The shares of Intercontinental Exchange, the New York Stock Exchange’s owner, fell by 2.2%.

Among the 11 sectors of the S&P 500, the manufacturing companies recorded the heaviest losses. 3M Co and General Electric provided gloomy forecasts for 2023 amid high inflation. 3M shares lost 6.2%, but General Electric shares rose by 1.2%.

Alphabet shares tumbled by 2.1% after the US Justice Department filed a lawsuit against Google for the abuse of its dominance in digital advertising.

Following their corporate reports, airspace and defense companies Lockheed Martin and Raytheon climbed by 1.8% and 3.3% respectively. The railway operator Union Pacific shed 3.3%.

Microsoft added more than 4% after its report but later fell by 1%. The high-tech giant unveiled financial records which prove resilience despite the ailing economy. The company owes its strength to its cloud division.

According to Refinitiv, Microsoft revenue expanded by 2% to 52.7 billion dollars in the final quarter of 2022, smaller than the expected growth of 52.9 billion dollars.

Slower-than-expected revenue growth in the final quarter signals troubled times for other high-tech giants. Apple and Alphabet are due to report on their earnings next week.

Other companies with mega market capitalization are also overwhelmed by pessimism. The shares of Apple, Tesla, Amazon, and Meta traded lower in the pre-market. Analysts estimate that the aggregate profit of the companies in the S&P 500 was 2.9% lower than in the previous quarter. On the plus side, weak results in corporate reports could confirm the efficiency of the Fed’s aggressive tightening.

Later today, Tesla and IBM will provide their reports. Meanwhile, the currency market is trading quietly. The US dollar has been stuck at around 102. The index is likely to trade in the intraday corridor between 101.5 and 102.3.
The greenback regained its footing today, having climbed to 102. Quiet trading could be explained by the fact that market participants are sitting on the sidelines of the Fed’s policy meeting.
Traders are betting on the rate hike by 25 basis points next Wednesday. Still, they prefer to avoid risky bets. In the two days ahead, market participants will absorb the flash US GDP data and fresh statistics on the labor market.
On Tuesday, traders found out that business activity in the US declined in January for 7 months straight, though a slowdown in the manufacturing and service sectors worsened to a lesser extent for the first time since September. The signs of a slowdown could assure the US Fed to soften its rhetoric.

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