S&P 500 falls on Alphabet slump, hawkish Fed; Trump signals tough China stance
The S&P 500 fell Wednesday, pressured by an Alphabet-led slump in tech, as the Federal Reserve delivered a hawkish pause on rates just as President Donald Trump showed that little appetite to ease his tough stance on China tariffs, News.az reports citing Investing.
At 2:29 p.m.m ET (18:29 GMT), the Dow Jones Industrial Average rose 147 points, or 0.4%, the S&P 500 index fell 0.2%, and the NASDAQ Composite fell 0.6%.
Trump says not open to pulling back China tariffs
Trump said on Wednesday that he was not open to pulling back on the 145% tariffs imposed on Beijing, dashing hopes for a sooner rather later U.S.-China trade truce.
The remarks came ahead of the U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer meeting with their Chinese counterparts for trade talks in Switzerland this week.
The two will travel to Switzerland on May 8.
Media reports said that China’s Vice Premier He Lifeng- Beijing’s lead official for U.S.-China matters- will meet Bessent in Switzerland.
Announcement of the talks marks a potential thaw in U.S.-China relations, which drastically worsened in April as the two countries engaged in a bitter tariff exchange.
Markets feared that a prolonged trade war between the world’s biggest economies will have dire implications for the global economy. Weak data points from the U.S. and China, released over the past week, added to concerns over trade-related disruptions.
Fed keeps rates on hold, but flags rising risk of higher inflation, slower growth
The Federal Reserve kept interest rates unchanged Wednesday as growing risks to economic growth and higher inflation leave the central bank rooted in its wait-and-see approach until the fog around the impact of the Trump administration’s tariffs is lifted.
"The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen," the Fed said.
The remarks suggest that the Fed isn’t leaning toward rate cuts anytime soon even as tariffs pose a threat to the economy.
Alphabet slumps on Apple search threat
Alphabet (NASDAQ:GOOGL) fell more than 8%, dragging the broader tech sector slower, on concerns about growing competition in online search just as Apple (NASDAQ:AAPL) unveiled plans to integrate AI-powered search capabilities into its browsers.
The move threatens Alphabet’s revenue-sharing deal with Apple for default Google searches on iOS devices.
Apple’s SVP of Services, Eddy Cue, also said that search and browser usage fell for the first time in April, underscoring the growing threat from AI large language models such as ChatGPT.
Disney soars after hiking guidance streaming unit strength
Walt Disney (NYSE:DIS) stock more than 10% after the entertainment giant reported fiscal second-quarter earnings that beat on the top and bottom lines, boosted by better-than-expected subscriber growth for its Disney+ streaming platform as well as increased spending in its U.S. theme parks.
Uber Technologies (NYSE:UBER) stock fell 2% after the ride-hailing service reported weaker-than-expected quarterly gross bookings and slower gains in its rideshare business, amid concerns about a slowing economy.
Advanced Micro Devices (NASDAQ:AMD) stock was roughly unchanged after the chipmaker unveiled upbeat second-quarter revenue guidance, driven by many clients racing to lock in purchases prior to the implementation of U.S. tariffs.
Marvell Technology (NASDAQ:MRVL) stock dropped more than 9% after the semiconductor announced it would postpone its Investor Day, initially scheduled for June 10, to a date in 2026, citing the current uncertain macroeconomic environment.
Super Micro Computer (NASDAQ:SMCI) stock fell 6% after the data center solutions provider reported third-quarter earnings that narrowly beat estimates but fell short on revenue and lowered its full-year outlook.
Novo Nordisk (NYSE:NVO) stock climbed more than 1% after the drugmaker cut its sales forecasts on Wednesday for the first time since the launch of its Wegovy weight-loss drug four years ago, but it still anticipated a recovery in its biggest U.S. market.
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