Stocks erased early gains Thursday and closed sharply negative, even as hopes built that the Federal Reserve is done hiking rates this year and techs got a boost from a rally in Meta (META) post-earnings.
The S&P 500 (^GSPC) was down 0.6% as investors took in another heavy day of earnings. Meanwhile, the Dow Jones Industrial Average (^DJI) lagged 0.7%, snapping its longest winning streak since 1987.
The tech-heavy Nasdaq Composite (^IXIC) slipped 0.6%, down from a more than 1% gain early in the session. Facebook parent Meta’s shares nevertheless surged after its second quarter earnings beat Wall Street estimates.
The Fed’s interest rate rise on Wednesday didn’t rock the boat, given it was widely expected. But one issue is still in focus: when another increase is coming. Chair Jerome Powell said the Fed hasn’t made any decision on whether to hike in September — when its next meeting takes place — and some optimism is growing that it could mean no more this year.
Early Thursday, the government reported that GDP rose at a quicker pace than economists expected in the second quarter of the year.
Plus, there’s another heavy day of quarterly results ahead, with McDonald’s (MCD) reporting strong results. Other highlights are Mastercard (MA), Southwest (LUV), Ford (F), and Intel (INTC).
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