Indices close lower as rally loses momentum

• U.S. stocks fell as recession fears and disappointing earnings reports weighed on investors.

• Major indices edged lower, while bond yields rose.

• Super Micro Computer and Airbnb saw sharp declines after missing earnings.

U.S. stocks fell on Wednesday as the market’s recovery from the stock market crash slowed and investors took in a series of disappointing earnings reports. All three benchmark indexes ended lower, while bond yields edged higher.

Stocks were higher in morning trading after the Bank of Japan said it would not raise rates when markets were volatile, further fueling sentiment among investors concerned about the carry trade, progress in global markets.

Stocks eventually fell, however, as investors continued to worry about recession risks and factored in a series of weak corporate earnings reports.

Super microcomputer The tech sector was down after the chipmaker missed fourth-quarter earnings estimates. Shares of SCMI ended the day down 20%, while Nvidia and Tesla fell 4%.

Airbnb has recorded a record drop in its stock price during Wednesday’s session after the company said in its earnings report that it was seeing a slowdown in demand from its U.S. travelers. Actions Shares ended Wednesday’s trading session down 13% at $113.01 each.

The sharp drop in stocks sent a signal that the market is “technically oversold,” strategists at financial firm iCapital said in a recent note.

“The economy East “The economic slowdown is such that markets are clearly willing to price in a recession, which supports defensive positioning for the core of the portfolio,” the firm said. “We are now largely out of the buyback blackout period and the biggest buyers may soon be in the market.”

Other forecasters, however, expect volatility to continue to permeate the market.

“This should not come as a huge shock to the savvy investor who understands the mechanics of the market and knows the next correction is on the horizon,” Ken Mahoney, CEO of Mahoney Asset Management, said in a statement.

Here’s where the U.S. indices stood at 4 p.m. on Wednesday:

Here’s what else is happening today:

The story continues

In commodities, bonds and cryptocurrencies:

• West Texas Intermediate Crude oil rose 3.06% to $75.44 a barrel. Brent crude oilthe international benchmark, rose 0.23% to $78.51 per barrel.

• Gold traded relatively flat at $2,385.66 an ounce.

• The 10-year Treasury yield rose six basis points to 3.952%.

• Bitcoin fell 3.4% to $54,740.

Read the original article on Business Insider