Stocks moved slightly lower in early trading Wednesday as investors await comments from the Federal Reserve after its policy meeting and quarterly results from major technology companies.
The S&P 500 and Nasdaq Composite were down 0.2% and 0.5%, respectively, about 25 minutes after the opening bell, while the Dow Jones Industrial Average was fractionally higher. Stocks closed solidly higher on Tuesday, led by big gains for tech stocks as the market rebounded from a steep downturn the previous day that was sparked by the competitive threat posed by Chinese AI startup DeepSeek.
Shares of large-cap tech companies were down across the board in early trading Wednesday. AI investor favorite Nvidia (NVDA), which has been whipsawed this week on the DeepSeek news, was down 2.5%. Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), Meta Platforms (META) and Tesla (TSLA) also lost ground.
Microsoft, Meta and Tesla are scheduled to release quarterly financial results after the closing bell today, while Apple’s quarterly results are due on Thursday.
On the earnings front this morning, shares of T-Mobile US (TMUS) were up 8% after the telecommunications giant released better-than-expected results. ASML Holding (ASML) jumped 6% after the Dutch semiconductor gear manufacturer reported strong earnings. Shares of Starbucks (SBUX), which late Tuesday reported results that topped analysts’ estimates, were rose 5%.
Investors will be paying particularly close attention this afternoon to the statement that accompanies the Fed’s decision on interest rates, as well as a press conference by Fed Chair Jerome Powell. The statement is due at 2:00 p.m. ET, with Powell set to speak half an hour later.
The Fed, which has cut its benchmark rate at each of its last three meetings dating back to September, isn’t expected to cut again today. But market participants are eager to hear how the Fed views recent economic data and policy initiatives being pursued by the Trump administration, and how they might play into future decisions on interest rates.
The yield on the 10-year Treasury, which correlates with expectations about where interest rates are headed and affects borrowing costs on a range of loans, was at 4.52% this morning, down from 4.55% late Tuesday. The yield is hovering near its lowest levels of the month.
Bitcoin was little-changed at $102,100 in recent trading, while gold futures were up slightly at around $2,775 an ounce and WTI crude oil futures fell 0.6%.
T-Mobile Stock pops as Results Handily Top Estimates
26 minutes ago
Shares of T-Mobile US rose Wednesday morning after the telecommunications company reported strong fourth-quarter results.
T-Mobile (TMUS) reported $2.98 billion, or $2.57 per share, in net income on $21.87 billion in revenue for the final quarter of 2024. Analysts had expected $2.63 billion, or $2.26 per share, in profits on $21.31 billion in revenue, according to estimates compiled by Visible Alpha.
CEO Mike Sievert said that T-Mobile had its lowest full-year churn rate for postpaid phone subscribers on record, and said it recorded its third straight year of at least 3 million postpaid phone net additions. The company recorded 903,000 postpaid phone net additions and 428,000 net internet customer additions, above the 859,810 and 402,000, respectively, that analysts had expected.
T-Mobile expects to record 5.5 million to 6 million net new customers in 2025, but did not provide a profit forecast because of the “high variability and difficulty in predicting” factors like tax expense and interest expense, which affect net income.
T-Mobile joins telecommunications rivals AT&T (T) and Verizon (VZ), which each topped estimates in their own fourth-quarter results over the last week.
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T-Mobile shares were up 8% in recent trading. The stock has gained nearly 50% over the past 12 months, about double the S&P 500’s increase over the period.
Major Indexes on Pace to Post Gains in January
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U.S. equities took a bruising to kick off the week, but with yesterday’s gains the major indexes are all near record highs and on pace to post gains for the month.
The Dow enters Wednesday’s session just 0.4% away from an all-time closing high, while the S&P 500 is 1% below its record close set last Thursday. The Nasdaq Composite is 2.2% away from its record closing high.
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With three trading days remaining in the month, the Dow is up 5.4% so far in January, while the S&P 500 and Nasdaq have gained 3.2% and 2.2%, respectively. The Dow and S&P both posted losses in December, while the Nasdaq is riding a two-month winning streak.
Key Apple Stock Price Levels to Watch
1 hr 37 min ago
Apple (AAPL) shares were losing ground in premarket trading Wednesday after two straight days of solid gains.
While AI-linked stocks tumbled to start the week on news that a sophisticated AI model developed by Chinese startup DeepSeek can compete with leading American models at a fraction of the cost, Apple shares climbed as investors concluded it wasn’t all bad news for the iPhone maker.
After setting a record high in late December, Apple shares retraced as much as 16% before finding support early last week around the 200-day moving average.
Apple shares broke above a key resistance area of $235 on Tuesday, and investors should keep a close eye on the $260 level. Key support levels are near $218 and $207.
Shares were down nearly 2% at around $234 in recent trading.
Read the full technical analysis piece here.
Major Stock Index Futures Point to Mixed Open
2 hr 7 min ago
Futures tied to the Dow Jones Industrial Average were down less than 0.1%.
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S&P 500 futures were flat.
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Nasdaq 100 futures were up 0.3%
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