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Wall St falls as Microsoft outlook dents tech stocks, earnings disappoint

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Wall Street's main indexes dropped on Wednesday, with the Nasdaq down 1.2%.

Growth stocks, however, have enjoyed a bounce in January after a battering last year, with investors now focused on earnings reports to assess the impact of the Federal Reserve's rate hikes and to gauge whether the renewed enthusiasm for these stocks will be sustained.

"Microsoft particularly talked about December - and that's another shot across the bow to the Fed that they make sure they do not overtighten and send the economy into a more severe recession than the one we're getting."

 

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