Market Reaction to Tech Earnings

As the trading day commenced on Wednesday, major U.S. stock exchanges mostly opened lower, reacting to tech earnings that failed to meet market expectations. Alphabet's Google cloud revenue, while reaching $11.9 billion in the fourth trimester of fiscal 2024, showed a slower growth rate compared to the previous quarter. Similarly, AMD reported a 28% annual decline in net income, dropping to $482 million.

Trade Deficit and Market Movements

Adding to the market's concerns, the U.S. trade deficit expanded in December 2024. The Dow Jones remained unchanged at the opening bell, but the Nasdaq 100 experienced a 0.54% drop, with AMD's shares plummeting 10.17% by 9:31 am ET. The S&P 500 also saw a decrease, shedding 0.22% at 9:30 am ET, followed by FMC's significant 33.58% drop a minute later.

Currency Movements

In currency markets, the euro strengthened against the dollar, gaining 0.32% at 9:29 am ET, trading at 1.04197.