Mario Tama
Major market averages trade to the downside on Wednesday morning with growth stocks facing the most pressure.
Early on and the Nasdaq Composite (COMP.IND) was -0.6%, the S&P 500 (SP500) was -0.3%, and the Dow (DJI) was -0.3%.
Palo Alto Networks (PANW) opened lower by more than 20%, weighing on tech stocks. But there was some buying support after Tuesday’s selloff and traders preparing for Nvidia’s (NVDA) earnings postmarket.
“Nvidia has gone from being the 5th largest company in the US to initially the 4th and then the 3rd largest but yesterday it slipped back to the 5th again as it fell -4.35% ahead of a very important earnings release today,” Deutsche Bank’s Jim Reid said. “This was the worst daily performance since last October.”
“However implied options suggest that the post results move is priced to be 10.5% in either direction so stand by for potential fireworks across markets in either direction. After having said that they’ll probably end up being flat in after-hours trading by tomorrow!”
Rates were mostly unchanged. The 10-year Treasury yield (US10Y)was near even at 4.28%. The 2-year yield (US2Y) was flat at 4.61%.
The minutes of the latest FOMC meeting arrive this afternoon.
“The US is approaching changes in both monetary and quantitative policies,” UBS’s Paul Donovan said. “Fed Chair Powell seemingly lacks the communication skills of his predecessors, so markets are easily pushed about by shifting policy expectations. The minutes offer a more considered view of where policy should be heading.”