NEW YORK, Feb. 8 — Wall Street ended lower on Monday as investors digested recent quarterly results from Amazon megacaps and Facebook owner Meta Platforms, while Peloton surged on reports of buyer interest potential, including Amazon.
Amazon.com Inc traded higher for much of the session after boosting its market capitalization by around US$190 billion (RM795.2 billion) on Friday on explosive profits.
Meta Platforms tumbled, adding to losses after its gloomy forecast last week caused the social media company’s stock market value to fall to a record high.
Meta was among the companies that weighed on the S&P 500 more than any other stock, while Nvidia lifted the index more than any other stock.
Peloton Interactive Inc has surged following reports that Amazon and Nike are exploring potential takeover deals for the stationary bike maker.
The S&P 500 remains down more than 5% so far in 2022 as investors fear the US Federal Reserve will raise interest rates faster than expected.
“Buying the dip was a foregone conclusion until 2022. There’s no more guaranteed buying on the dip,” said Jake Dolllarhide, managing director of Longbow Asset Management in Tulsa, Oklahoma. “We are seeing corrections in indices and individual stocks on a daily and weekly basis.”
According to preliminary data, the S&P 500 lost 16.44 points, or 0.37%, to end at 4,484.08 points, while the Nasdaq Composite lost 82.25 points, or 0.58%, at 14 015.75. The Dow Jones Industrial Average rose 1.52 points, or 0.00%, to 35,091.26.
Tyson Foods Inc jumped after the meatpacker’s first-quarter profit nearly doubled and beat estimates on higher prices.
Of 278 S&P 500 companies that reported earnings on Friday, 78% beat analysts’ expectations, according to Refinitiv data.
A surprisingly strong jobs report last week heightened investor concerns about a potentially aggressive tightening of monetary policy by the Fed. Key inflation data for January is due Thursday.
Markets are now pricing in a one-in-three chance that the Fed could hike 50 basis points in March and the rate outlook hitting 1.5% by the end of the year.
Spirit Airlines Inc pounced on it, and Frontier Group Holdings unveiled plans to create America’s fifth-largest airline in a $2.9 billion combination. This lifted the S&P 1500 Airlines Index.
U.S.-listed shares of China’s Alibaba Group Holding fell after registering an additional 1 billion U.S. depository shares. ― Reuters