Tech stocks drag Wall Street lower ahead of Fed meeting

U.S. stock indexes fell on Tuesday as a selloff in technology firms ahead of the Federal Reserve’s policy meeting overshadowed upbeat results from the likes of IBM and Johnson & Johnson. The Fed will announce its policy statement on Wednesday at 2:00 pm ET, which will be watched closely for cues on the central bank’s timeline for hiking key interest rates to attempt to combat rampant U.S. inflation.



The S&P 500 index had briefly declined as much as 10.6% from its Jan. 3 closing peak, flirting with a correction for the second time this year before clawing back some lost ground in early afternoon trading.

The index is now down 9.7% from its peak. A correction would be confirmed if the index closes 10% or more below its record closing level.

Fed funds futures traders are pricing in a 25 basis points hike in March, in addition to three more rate increases by the end of the year.

“With risks around Ukraine to keep lingering and the Fed set to confirm a significantly more hawkish stance, volatility is likely to remain elevated near term,” said Thomas Hempell, head of macro & market research, Generali Investments.

The fourth-quarter earnings season has started off on a mixed note, with all eyes now on mega-cap growth company Microsoft’s earnings after market close on Tuesday, followed by Apple and Tesla later this week.

MacDailyNews Note: Apple reports Q122 results on January 27th. Analysts’ consensus expects the company to earn $1.88 a share on all-time quarterly revenue of $118.38 billion.

We’ll have Apple’s results for you as soon as they are released, just check our homepage right around 1:30 p.m. PT / 4:30 p.m. ET on January 27th. We will follow that with live notes from Apple’s’ conference call starting at 2:00 p.m. PT / 5:00 p.m. ET on the 27th.

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