Wall St. ends mostly flat ahead of earnings wave with Fed meet on focus

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Wall St. ends mostly flat ahead of earnings wave with Fed meet on focus

On Tuesday, lackadaisical earnings’ reports from a raft of corporate giants including 3M and Tesla Inc had weighed heavily on Wall St. as benchmark S&P 500 and trade-sensitive Dow closed out the session nearly flatlined ahead of a flurry of earnings’ reports from mega-cap tech stocks such as Microsoft, Google alongside other top-tier corporate giants, while investors’ caution ahead of a high-stake meet of Fed policymakers had taken a heftier-than-anticipated toll on investors’ morale.

In point of fact, in the day’s Wall St. had witnessed a series of chambré moves from market participants ahead of a critical Fed meet as beforementioned, while investors’ cynicism believed to be intensified over a blazing interrogation on whether a hawkish Fed move, which is highly unlikely, would leave sufficient rooms for growth stocks to push further.

Amid such competing narratives that largely hinge on how the US Fed approaches to handle a higher inflation with growing prospects of a higher interest rate, investors appeared to have handpicked a safer side in the day’s Wall St., as any kind of hint of a higher interest rate would highly likely to witness a stronger US Dollar alongside a higher US Treasury Yields, which in effect might offset the impacts of a likely boom in tech-related stocks’ earnings.

Wall St. ends flatlined amid growing investors’ caution

On top of that, Tesla Inc. faltered 4.5 per cent despite record deliveries on Q1, 2021, though, analysts claimed the result might have fallen short of some investors’ anticipations, while Microsoft fell more than 4 per cent in late-afternoon trading despite a fairly upbeat earnings’ report on frets of overvaluation.

Besides, in the latest flashpoint of a growing disbelief about vindications of a high-flying valuation of growth stocks, shares’ prices of Apple Inc., Amazon.com Inc. and Facebook Inc., remained mostly mixed ahead of their earnings’ reports scheduled to be released later this week.

Citing statistics, in the day’s Wall St. closing bell, trade-sensitive Dow added 0.01 per cent to 33,984.93 and benchmark S&P 500 edged 0.02 per cent lower to 4,186.72, while tech-heavy Nasdaq lost 0.34 per cent to round off the day at 14,090.22.

Meanwhile, addressing to investors’ caution ahead of mega-cap tech earnings, Chief Executive Officer of Longbow Asset Management in Tulsa, Oklahoma, Jake Dollarhide said, “Everyone is waiting to see the big tech earnings after bell today.

If it’s good, I think I think we’ll have a lot of positive momentum. If they’re disappointing, we may be in for a very volatile week.