U.S. stocks fell Wednesday, with investors digesting a slew of corporate earnings in anticipation of more statements from Federal Reserve policymakers.
More statements from the Fed
Growing optimism about a likely interest rate cut has been dampened by a series of Fed officials who have indicated that interest rates will remain unchanged in the near term.
Minneapolis Fed President Neel Kashkari reported that inflation could lead to unchanged interest rates for the remainder of the year, even as markets begin to expect a higher probability of a rate cut in September after weaker-than-expected nonfarm payrolls data.
Meanwhile, as the labor market appears to be showing signs of cooling, inflation is expected to remain a key focus for the Fed. Next week’s consumer price index data for April will be released, and anticipation of this has also dampened movements on Wall Street.
Additionally, several Fed officials are due to speak today, Wednesday, including Vice Chairman Philip Jefferson, Governor Lisa Cook, and Boston Fed President Susan Collins.
There remains a great deal of uncertainty about when the Fed will begin cutting interest rates, with officials typically adjusting estimates for a later start and less monetary policy easing overall this year.
Uber falls after reporting quarterly loss
First-quarter earnings season continues apace, Wednesday. Shares of Uber Technologies (UBER) plunged about 8% after the company reported first-quarter losses and missed bookings estimates.
Its competitor Lyft (LYFT) outperformed, rising more than 4% after projecting higher-than-expected net bookings and reporting a core profit for the quarter.
Reddit (RDDT) rose 8% after the social networking platform showed much better-than-expected first-quarter earnings, as well as positive second-quarter guidance, in the company’s first earnings season as a publicly traded company.
Online lending platform Upstart (UPST) plunged 12% after offering poor estimates for the current quarter.
Electric car producer Rivian Automotive (RIVN) plunged nearly 8% after reporting a larger-than-expected first-quarter loss, and video game maker Electronic Arts (EA) lost 2% as a result of its dismal results and forecasts.
