CNBC Daily Open - Wall Street sinks, Ford slumps

CNBC Daily Open: Wall Street Sinks, Ford Slumps

U.S. stocks plummeted on Thursday, with the S&P 500 and Nasdaq recording their worst day since 2022. The Dow Jones Industrial Average also suffered significant losses, dragging down the overall market. The selloff was triggered by a combination of factors, including concerns over the global economy and disappointing corporate earnings.

The S&P 500 tumbled 3.1% to 3,848.79, marking its biggest one-day decline since October 2022. The Nasdaq Composite also had its worst day since 2022, plummeting 3.7% to 13,513.39. Meanwhile, the Dow Jones Industrial Average fell 2.8% to 30,874.89.

Tesla shares were among the biggest losers, slumping 12% after the company reported a surprise profit miss. The electric vehicle maker’s stock has been volatile in recent months due to concerns over competition, regulation, and CEO Elon Musk’s controversial statements.

Ford Motor Company also contributed to the market’s decline, missing earnings estimates and triggering a sell-off in its shares. The automaker’s stock plummeted 7% after it reported weaker-than-expected fourth-quarter profits. The company cited higher costs and lower sales for the disappointing results.

Other major companies that missed earnings estimates include Intel, IBM, and American Express. Their shares also suffered significant losses, with Intel plummeting 13%, IBM falling 5%, and American Express declining 4%.

The selloff was not limited to individual stocks, as all 11 primary S&P 500 sectors finished the day in negative territory. Technology, consumer discretionary, and energy stocks were among the biggest losers, with each sector falling more than 3%.

Investors are increasingly worried about the global economy, as the COVID-19 pandemic continues to spread and geopolitical tensions rise. The International Monetary Fund (IMF) recently downgraded its global growth forecast for 2023, citing the ongoing pandemic and supply chain disruptions.

“The market is reacting to a combination of factors, including concerns over the global economy and disappointing corporate earnings,” said David Kelly, chief global strategist at JPMorgan Funds. “Investors are becoming increasingly risk-averse, which is leading to a sell-off in stocks.”

Despite the recent downturn, some analysts remain optimistic about the long-term outlook for the market. “We believe that the fundamentals of the U.S. economy remain strong, and we expect the market to recover in the coming months,” said John Lynch, chief investment strategist at LPL Financial.

In conclusion, Thursday’s selloff on Wall Street was a significant one, with all major indexes tumbling and many individual stocks suffering substantial losses. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all recorded their worst day since 2022, driven by concerns over the global economy and disappointing corporate earnings. However, some analysts remain optimistic about the long-term outlook for the market, citing the strong fundamentals of the U.S. economy.