Stocks tumble as Fed holds rates steady and corporate earnings disappoint

Snapchat CEO Evan Spiegel speaks onstage during 'Disrupting Information and Communication' at the Vanity Fair New Establishment Summit at Yerba Buena Center for the Arts on October 8, 2014 in San Francisco, California.

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Snapchat CEO Evan Spiegel speaks onstage during ‘Disrupting Information and Communication’ at the Vanity Fair New Establishment Summit at Yerba Buena Center for the Arts on October 8, 2014 in San Francisco, California.
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Getty/Michael Kovac

Stocks slid on Wednesday, as the Federal Reserve left interest rates unchanged despite climbing inflation. The Dow Jones industrial average shed more than 150 points, dragged lower after disappointing earnings from Unum Group and Molson Coors. The 10-year Treasury yield held below 3%.

Here’s the scoreboard:

Dow Jones Industrial Average: 23,923.91 −175.14 (0.73%)

S&P 500: 2,636.49 −18.31 (0.69%)

AUD/USD: 0.7490 0.0000 (0.00%)

ASX 200 SPI futures:6,057.5 +59.0 (+0.98%)

  1. The Fed left the benchmark interest rate unchanged at its policy meeting, in a widely-expected move. Federal Reserve Open Market Committee officials said that inflation was near their 2% target.
  2. The US saw stronger hiring last month than economists expected, according to a private report. The economy added 204,000 jobs in April, data from payroll processor ADP showed.
  3. Trade talks between the US and China start this week. Chinese President Xi’s economic adviser will meet with members of the Trump administration in Beijing on Thursday and Friday – but some are skeptical that any meaningful negotiations will be reached.
  4. Apple earnings crushed analyst expectations.The company also announced a $100 billion share buybacks, thanks to corporate tax cuts.
  5. Snap shares, on the other hand, sank to a record low after disastrous first-quarter earnings report. The stock dropped more than 21% after Wall Street revenue estimates by a long shot. Likewise, Gilead Sciences had its worst day in more than a year on the back of disappointing results.

Here is Thursday’s economic calendar:

  • Australia’s central bank announces interest rate decisions.
  • The Institute for Supply Management releases US PMI data.
  • Canada reports trade balance numbers.
  • Japanese banks are closed for Greenery Day.