Top strategists are warning that stocks face fresh declines in the first half as corporate earnings succumb to weaker economic growth and sky-high inflation, and central banks remain hawkish.
U.S. stocks fluctuated after Apple Inc. gave up an earlier advance and weak earnings dented Ford Co. and EBay Inc.
The S&P 500 was little changed in afternoon trading after pulling off an all-time high. The Nasdaq 100 turned negative after it also touched a record. The volatility came as investors continued to digest major corporate results that overshadowed data showing the American economy accelerated last quarter. U.S. gross domestic product expanded at a 6.4 per cent annualized rate in the first quarter, according to the Commerce Department.
Apple erased a gain of as much as 2.6 per cent, weighing heavily on the main U.S. indexes. Ford plunged the most since March 2020 after reducing its full-year forecast because of a computer-chip shortage. EBay tumbled the most since 2016 after issuing a sales outlook that suggested spending on the site could recede as more people get vaccinated. Facebook Inc. held gains, surging to a record after after it posted sales that dwarfed estimates