Shares fell on Wednesday after the latest set of corporate earnings heightened concerns about how some of the biggest companies are faring as prices rise and fears of a recession mount.
The Dow Jones Industrial Average fell 280 points, or 0.8%. The Nasdaq Composite fell 1.9%, and the S&P 500 fell 1.36%.
Microsoft fell 3.7% despite earnings beating analysts’ estimates after it gave lackluster guidance on its earnings call. Boeing dived for a top and bottom line miss.
Investors are bracing for more high-profile corporate earnings this week as fears of a recession grow. So far, more than 90 S&P 500 companies have reported fourth-quarter earnings, and 68% of them have delivered stronger-than-expected results, according to FactSet.
“With most earnings still ahead of the market, the question of whether the shift to growth signaled by recent rallies is warranted can be answered with upside earnings surprises and solid guidance,” said Quincy Krosby, global chief strategist at LPL. Financial.
Tesla and IBM and are among the companies that will publish figures after the clock.
Wednesday’s move followed a three-day winning streak for the blue-chip Dow. All three major averages are trading flat, or slightly higher, for the week.