US stocks fell on Wednesday, just shy of all-time highs.
The Standard & Poor's 500 index fell by 8.42 points, or 0.2%, to 5,069.76 points, continuing its quiet march since it hit a record high last week. The Dow Jones Industrial Average fell 23.39 points, or 0.1%, to 38,949.02 points. The Nasdaq Composite Index fell 87.56 points, or 0.5%, to 15,947.74 points, a day after it fell 0.1% from the record set in 2021.
Treasury yields also fell in the bond market after a report said the US economy may have grown slightly slower at the end of 2023 than previously expected. However, growth remained strong, as the economy continues to defy recession expectations despite higher interest rates aimed at lowering inflation.
The 1.3% decline for Nvidia and the 1.8% decline for Alphabet, Google's parent company, were the biggest weights in the market. They are among a small group of big technology stocks that have been disproportionately responsible for the S&P 500 hitting records.
Such market concentration could be a worrying signal, according to Scott Wren, chief global market strategist at the Wells Fargo Investment Institute. Broad gains among a wide range of stocks are usually a more positive sign that market strength is sustainable.
Bumble stock fell 14.8% after it reported weaker fourth-quarter results than analysts expected. The dating and friend-making app company, which recently revamped its leadership team, also gave revenue forecasts for next year that fell short of analysts' expectations.
Boston Beer, the company behind Samuel Adams, fell 15.8% after reporting a bigger loss than analysts expected. I've been hit by dips due to really hard seltzer water.
Urban Outfitters stock fell 12.8% after the retailer reported weaker-than-expected results. The company, which also operates Anthropologie stores, said sales continue to weaken at Urban Outfitters locations.
EBay stock helped limit market losses, rising by 7.9% after announcing stronger results than analysts expected. Axon Enterprise, a company that sells Tasers, body cameras and other equipment, also had a better-than-expected earnings report, and its stock jumped 13.8%.
Coinbase rose 0.8% after rising further earlier in the day, continuing its strong run as the price of Bitcoin continues to rise. New exchange-traded funds that make investing in bitcoin easier have fueled interest in the cryptocurrency, with BlackRock's iShares Bitcoin fund alone rapidly growing to $7 billion in assets.
Bitcoin's price briefly surpassed $64,000 on Wednesday for the first time since 2021. It is approaching the record of around $69,000 after rising more than 40% so far this year.
Coinbase CEO Brian Armstrong apologized to customers during the day for the issues they were experiencing as the company was “dealing with a significant increase in traffic” as the price of Bitcoin rose. The company said some users may have seen a zero balance on their accounts and had errors in buying and selling.
Beyond Meat stock rose 30.7% despite reporting much weaker results in the fourth quarter than expected. Its revenue was slightly better than expected after falling less than expected, and it said its profitability would likely increase through 2024.
Agilent Technologies stock rose 3.4% for one of the biggest gains in the S&P 500 after beating expectations for both earnings and revenue.
In overseas stock markets, indices fell in most parts of Asia and Europe.
Shares fell 1.9% in Shanghai and 1.5% in Hong Kong. Country Garden, China's largest private property developer, said on Wednesday it faces a liquidation petition after failing to repay a HK$1.6 billion ($204.5 million) term loan facility. The first hearing in this case is scheduled for May 17.
The move comes after China Evergrande, the world's most indebted real estate developer, was ordered into liquidation following a failed attempt to restructure $300 billion in debt in late January.
In the bond market, the yield on the 10-year Treasury note fell to 4.26% from 4.31% late Tuesday.
AP reporters Matt Ott and Zimo Zhong contributed to this report.
