S&P 500 drops for fifth consecutive session

by Jonathan Adams
S&P 500

The Dow Jones Industrial Average stayed just above the flatline, while the Nasdaq Composite slid 0.5%, extending tech’s recent decline

US stocks closed largely in the red on Thursday as April’s doldrums lingered in the market.

The S&P 500 dropped nearly 0.2% to notch its fifth consecutive session of declines, its longest losing streak of the year. The Dow Jones Industrial Average (DJIA) stayed just above the flatline, while the Nasdaq Composite slid 0.5%, extending tech’s recent decline.

Stocks have struggled amid concerns inflation is no longer cooling and the Fed could ease back on interest rate reductions. Fed officials fuelled those concerns on Thursday, with Atlanta Fed president Raphael Bostic reiterating that he does not expect to cut rates until the end of the year.

That has put corporate earnings centre stage as investors watch closely how well reports match up with high expectations. TSMC’s latest quarterly results were a mixed bag: The Taiwanese chip giant cautioned on its growth outlook this year outside of its memory chips business, sending the stock down more than 5%. The firm, nonetheless, flagged “insatiable” appetite for artificial intelligence as it posted a quarterly profit beat.

The earnings spotlight now shifts to Netflix, the first of the megacap tech firms to report. The company’s financial update is seen by some as the first real test for stocks this earnings season, given the megacaps are still playing a big part in pushing markets up.

US bond yields, a recent headwind for stocks, rose again on Thursday. The 10-year Treasury yield was up, trading near 4.65%.

After the market close, Netflix reported first quarter earnings that showed more subscriber additions than expected but a marginally slightly lower revenue guidance than hoped for the current quarter. Shares slid more than 3% in after-hours trade.

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