U.S. stocks trading well off lows as tech gloom wanes - BNN Bloomberg

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Wall Street got a reality check after Microsoft’s sales warning spurred a stock-market rout on concern that even stalwart of the tech industry will be impacted by an economic downturn.

The S&P 500 almost erased a slide that approached 2 per cent earlier in the session. Elon Musk’s electric-vehicle giant whipsawed Wednesday — and its results may inject another dose of volatility. Options pricing suggests the stock might fluctuate 11 per cent in either direction after the report, which would be the biggest such move since 2021, according to data compiled by Bloomberg.

The S&P 500 is headed for the best January since 2019 driven by expectations that the Fed will moderate its rate hikes. The equity rebound came just as the economy is headed for a downturn — setting the stage for a selloff, JPMorgan Chase & Co.’s Marko Kolanovic told CNBC. “We have not been impressed with the quality of earnings in recent weeks. Looking forward, margins remain at risk as inflation softens and economic growth slows,” Saperstein noted.

The New York Stock Exchange said a manual error caused wild price swings and trading halts for hundreds of company stocks when the market opened on Tuesday.

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