Market Turbulence: Mixed Earnings Shape U.S. Stock Indices

U.S. stock indices showed minimal movement as investors processed varied corporate earnings and key economic indicators. Alphabet surged with robust cloud and ad sales, while chip stocks declined. GDP growth and job data highlighted steady economic performance, but Eli Lilly's drug sales lagged. Upcoming elections remain a potential market influencer.

On Wednesday, U.S. stock indices displayed minimal fluctuations as investors grappled with contrasting corporate earnings and essential economic data. Alphabet shares climbed 5.8% on strong cloud and YouTube ad revenue, marking a positive start for the 'Magnificent Seven', with a focus on their impact on Wall Street's performance.

Meanwhile, a slump in chip stocks tempered gains, as Advanced Micro Devices dropped 8.9% due to disappointing fourth-quarter revenue forecasts. Additionally, Caterpillar's shares fell 3.9% after projecting lower annual sales owing to waning demand. Economic indicators showed the GDP's 2.8% annualized growth slightly missed expectations, while job growth was unexpectedly robust.

Investor sentiment was further influenced by political developments, as the tight race between Kamala Harris and Donald Trump gathered attention. Economic data indicating reduced job openings bolstered expectations of a U.S. interest rate cut by the Federal Reserve. Markets await further direction as major tech companies prepare to disclose earnings.

(With inputs from agencies.)