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Tech stocks led the market’s decline early Wednesday morning after a pair of disappointing quarterly reports from AMD and Google.
The Dow was down 140 points, or 0.3%, while the S&P 500 was down 0.4%. The Nasdaq Composite was down 0.7%.
Google’s parent Alphabet missed estimates on revenue due to a slowdown in their cloud business while AMD reported slower than expected data center revenue, a segment that includes money coming in from artificial intelligence chips.
Alphabet’s shares, down 7.7%, were on pace for the largest percent decrease since Oct. 25, 2023, according to Dow Jones Market Data. AMD’s stock was down 11%.
Tariff headlines, which had created chaos in the foreign exchange markets, have eased for now. President Trump paused Mexico and Canada tariffs, and while China’s tariffs are still on, at least the U.S. Postal Service has now reversed its decision to block packages coming from China and Hong Kong.
The mail agency’s decision last night to stop taking packages from the regions would have hurt Chinese retailers like Shein, who ships inexpensive apparel from China, although it has warehouses in the U.S. Amazon also ships inventory by ocean freight from China.
In the bond market, things are calm too. The 10-year Treasury yield was down 0.1 percentage points after the Treasury Department, under the helm of new Secretary Scott Bessent, decided to keep sales of bonds steady well into 2025.
Steady and consistent supply removes one risk for the bond market. There are plenty others, including a ballooning deficit, Trump’s spending plans and the debt ceiling.
