In a sharp break from its winning streak, Dow Jones futures and other major indexes dipped on Tuesday due to the market faltering ahead of key speeches from Federal Reserve officials. Among the companies that experienced significant falls was Uber Technologies, stocks in the ride-sharing giant steeply declined after it failed to meet Wall Street’s expectations. Investors and analysts are eagerly waiting for hints to the Federal Reserve’s interest rate strategies in the speeches of Kansas City Fed President Jeffrey Schmid and Dallas Fed President Lorie Logan on Tuesday, followed the next day by that of Fed Chair Jerome Powell. The general aim of the investors is to assess the potential market impact of changes in the interest rates policies.
Uber Technologies (UBER) experienced a 2.5% dip in its stock on Tuesday, primarily due to the ride-sharing company not meeting its top-line expectations. Nevertheless, the release of their booking figures provided a ray of hope for investors, leading the company to drastically amplify its forecast. Some of the notable movers were Celsius (CELH), D.R. Horton (DHI), GlobalFoundries (GFS), NXP Semiconductor (NXPI), Planet Fitness (PLNT) and Vertex Pharmaceuticals (VRTX). The Dow Jones Industrial Average fell 0.15% after Tuesday’s opening bell, the S&P 500 moved down fractionally, and the Nasdag composite rose 0.3% in the morning. The 10-year U.S. Treasury bond yield dropped to 4.6% on Tuesday. The benchmark rebounded from its lowest close in more than a month.
The current focus on the discussions around the interest rates approach by the Federal Reserve officials has resulted in a significant dent in the stock market, with the benchmark indexes experiencing a drop on Tuesday. Uber Technologies suffered a major blow in the stock market, however, the offerings of new booking numbers gave a glimpse of hope for the ride-sharing company. Furthermore, as earnings of many companies continue to influence the stock market rally, the fall in the stock prices across the major sectors was imminent. Additionally, the slight shift in the treasury yield to 4.6% indicates the current investor apprehension about the market dynamics and its volatile shifts.
