EconoTicker

Wall Street closed mostly lower on Wednesday after the Federal Reserve kept interest rates unchanged, in line with market expectations. Sentiment also remained cautious after further diplomatic setbacks between the U.S. and Iran, keeping geopolitical risk in focus.

The S&P 500 ended little changed at 7,136.52, while the Nasdaq Composite also finished nearly flat at 24,673.24. The Dow Jones Industrial Average fell 0.6% to 48,861.68, showing weaker performance among blue-chip stocks.

Possible Market Effect:

The Fed’s expected hold limited immediate market shock, but muted equity performance shows investors remain cautious ahead of policy guidance, earnings results, and U.S.-Iran developments. Continued geopolitical uncertainty may support defensive positioning and keep pressure on risk-sensitive sectors.

Source: Federal Reserve; U.S. market data

Booking (BKNG), the American online travel and reservations company, reported EPS of 1.14, above the forecast of 1.08, producing an EPS surprise of +5.56%. Revenue came in at 5.53B, above the forecast of 5.51B, with a revenue surprise of +0.36%. With a market cap of 134.92B, the stock last traded at 173.38, down -2.33%, while extended-hours trading fell to 166.00, down -4.26%. The report shows stronger-than-expected profitability and a small revenue beat, but the price reaction was negative.

Possible Market Effect:

The double beat supports the fundamental view, but the -4.26% extended-hours decline suggests investors may be focused on guidance, travel demand, or valuation.

Source: Earnings calendar data

BYD Co Ltd (BYDDF), the Chinese electric vehicle and battery manufacturer traded in the U.S. market, reported EPS of 0.0655, below the forecast of 0.0773, producing an EPS surprise of -15.27%. Revenue reached 21.97B, above the forecast of 21.45B, with a revenue surprise of +2.42%. With a market cap of 139.02B, the stock last traded at 13.27, down -2.20%. No extended-hours price was listed. The report shows revenue outperformance but weaker-than-expected profitability.

Possible Market Effect:

The EPS miss may weigh on BYDDF sentiment despite the revenue beat.

Source: Earnings calendar data

Airbus Group (EADSY), the Europe-origin aerospace and defense company traded in the U.S. market, reported EPS of 0.0965, below the forecast of 0.1366, producing an EPS surprise of -29.36%. Revenue came in at 14.8B, below the forecast of 14.85B, with a revenue surprise of -0.34%. With a market cap of 153.13B, the stock last traded at 48.36, down -0.56%, while extended-hours trading was unchanged at 48.36, or 0.00%. The report shows weaker profitability and a small revenue miss.

Possible Market Effect:

The EPS miss may weigh on EADSY sentiment, although the flat extended-hours move suggests limited additional repricing.

Source: Earnings calendar data

T-Mobile US (TMUS), the American wireless telecommunications company, reported EPS of 2.27, above the forecast of 2.05, producing an EPS surprise of +10.73%. Revenue reached 23.11B, above the forecast of 22.97B, with a revenue surprise of +0.61%. With a market cap of 204.51B, the stock last traded at 186.72, up +2.17%, while extended-hours trading rose to 191.00, up +2.29%. The report shows stronger-than-expected earnings and modest revenue outperformance.

Possible Market Effect:

The double beat and positive extended-hours move may support continued near-term strength in TMUS shares.

Source: Earnings calendar data

Coca-Cola (KO), the American beverage company, reported EPS of 0.86, above the forecast of 0.81, producing an EPS surprise of +6.17%. Revenue came in at 12.5B, above the forecast of 12.27B, with a revenue surprise of +1.87%. With a market cap of 337.14B, the stock last traded at 78.35, up +3.86%, while extended-hours trading edged higher to 78.37, up +0.03%. The report shows stronger-than-expected profitability and revenue.

Possible Market Effect:

The double beat and positive regular-session move may support near-term sentiment toward KO shares.

Source: Earnings calendar data

Visa A (V), the American payments technology company, reported EPS of 3.31, above the forecast of 3.10, producing an EPS surprise of +6.77%. Revenue reached 11.2B, above the forecast of 10.75B, with a revenue surprise of +4.19%. With a market cap of 589.4B, the stock last traded at 309.30, down -0.11%, while extended-hours trading rose to 323.56, up +4.61%. The report shows stronger-than-expected profitability and revenue.

Possible Market Effect:

The double beat and +4.61% extended-hours gain may support positive short-term repricing in Visa shares.

Source: Earnings calendar data

Asian equity markets traded mixed on Wednesday, with South Korea holding near record territory while China and Hong Kong technology shares stayed supported despite renewed U.S.-China chip tensions.

In South Korea, the KOSPI was last around 6,655.43, up 14.41 points or 0.22%, after hitting record highs in the previous session. Singapore’s Straits Times Index was last quoted at 4,887.69, down 5.04 points or 0.10%, while GIFT Nifty 50 futures traded near 24,111.00, up 0.05%, pointing to a broadly flat signal for Indian equities.

In China and Hong Kong, sentiment was stronger at the index level. The Shanghai Composite rose 0.40% to 4,094.80, the CSI 300 gained around 0.64% to 4,788.53, and Hong Kong’s Hang Seng climbed 1.29% to 26,010.62. The Hang Seng TECH Index was also supported, trading around 4,879.00, as optimism around lower-cost AI developments from DeepSeek helped offset weakness from U.S. technology headlines.

However, Hua Hong Semiconductor, China’s No. 2 chipmaker, remained under pressure after Reuters reported that the U.S. had ordered some chip-equipment suppliers to halt shipments to the company. Hua Hong’s Hong Kong-listed shares traded around HK$106.50, down from a previous close of HK$113.30, after moving between HK$102.80 and HK$110.00.

Possible Market Effect:

The broader China and Hong Kong rally suggests investors are still willing to buy AI-linked themes, especially after DeepSeek-related optimism. But the Hua Hong selloff shows U.S. chip curbs remain a major risk for Chinese semiconductor names, while regional sentiment may stay selective ahead of Chinese PMI data, Fed signals, and major U.S. tech earnings.

Source: Reuters; Investing.com; Yahoo Finance; Singapore Exchange; Bloomberg Market Data

Wall Street closed lower overnight as renewed concerns over AI monetization pressured technology shares. The Dow Jones Industrial Average fell 25.86 points, or 0.05%, to 49,141.93. The S&P 500 lost 35.11 points, or 0.49%, to 7,138.80, while the Nasdaq Composite dropped 223.30 points, or 0.90%, to 24,663.80. Reuters said the decline followed a Wall Street Journal report that OpenAI missed internal user and revenue targets, raising questions over the sustainability of heavy AI-related data-center spending.

U.S. stock index futures were slightly higher in Asian trading as investors looked ahead to major “Magnificent 7” earnings and the Federal Reserve decision. S&P 500 futures rose about 0.2% to 7,185.75, Nasdaq 100 futures gained about 0.4% to 27,278.0, and Dow Jones futures advanced about 0.2% to 49,407.0.

Possible Market Effect:

The market remains vulnerable to AI-related disappointment, especially in semiconductors, cloud infrastructure, and high-valuation technology names. However, firmer futures suggest investors are not fully abandoning risk before Big Tech earnings and the Fed decision.

Source: Reuters; Investing.com; The Wall Street Journal

Starbucks, the American global coffee chain, raised its full-year 2026 guidance as CEO Brian Niccol’s turnaround plan continued to improve store traffic and operating performance. The company now expects comparable-store sales growth of 5.0% or more globally and in the U.S., while adjusted EPS is projected at $2.25 to $2.45.

In the second quarter, global same-store sales rose 6.2%, driven by a 3.8% increase in comparable transactions and a 2.3% rise in average ticket. Consolidated net revenue increased 9% to $9.5 billion, beating the consensus estimate of $9.12 billion. Adjusted EPS came in at $0.50, beating analyst expectations of $0.42 by $0.08, or about 19.0%.

The company’s operating margin improved to 9.4%, up 120 basis points from the prior year. Starbucks said its “Back to Starbucks” plan, including a simplified menu, reduced wait times, and better worker compensation, helped improve customer experience and store consistency.

Possible Market Effect:

The stronger guidance and earnings beat may support Starbucks shares and improve sentiment toward U.S. consumer discretionary stocks. The key market focus will be whether stronger traffic growth and margin recovery can continue through the rest of 2026.

Source: Starbucks Q2 2026 Earnings Release

Spotify Technology SA, the Swedish-founded, Luxembourg-domiciled audio streaming company listed in the U.S., reported stronger-than-expected first-quarter results, but its shares fell more than 13% at the open after second-quarter operating income guidance missed Wall Street expectations.

Adjusted EPS came in at €3.45, beating the €2.95 estimate by €0.50, or about 16.9%. Revenue reached €4.53 billion, slightly above the €4.52 billion consensus and up 8% YoY, or 14% on a constant-currency basis. Monthly active users rose 12% YoY to 761 million, beating the 759.23 million estimate and the company’s own 759 million guidance.

The negative reaction came from guidance. Spotify expects second-quarter operating income of €630 million, below the €674.3 million analyst forecast, a shortfall of €44.3 million, or about 6.6%. However, Q2 revenue guidance of €4.8 billion was slightly above the €4.77 billion consensus, and projected monthly active users of 778 million exceeded the 773.9 million estimate.

Premium subscribers increased 9% YoY to 293 million, in line with expectations, while premium revenue rose 10% YoY to €4.15 billion. Ad-supported revenue fell 5% YoY to €385 million, although it grew 3% on a constant-currency basis. Gross margin reached a first-quarter record of 33.0%, while operating income hit a record €715 million and free cash flow reached a first-quarter record of €824 million.

Possible Market Effect:

Spotify’s sharp stock decline shows that investors are focusing more on forward profitability than backward-looking beats. The result may pressure high-growth subscription and platform stocks if markets become less tolerant of margin guidance misses, even when user growth and revenue remain strong.

Source: Spotify Q1 2026 Earnings Release; InvestingPro / Wall Street consensus data

General Motors, the American automaker, reported stronger-than-expected first-quarter results, but its shares reversed early gains and fell 3.9% by 10:10 a.m. ET. Adjusted earnings per share came in at $3.70, beating the analyst consensus of $2.61 by $1.09, or about 41.8%. Revenue reached $43.6 billion, slightly above the $43.38 billion estimate, but declined 0.9% YoY from $44.0 billion a year earlier.

GM raised its full-year 2026 adjusted EBIT guidance to $13.5 billion–$15.5 billion, up from the previous range of $13.0 billion–$15.0 billion. The upgrade was supported by a favorable $0.5 billion adjustment linked to a U.S. Supreme Court decision on certain tariffs paid under the International Emergency Economic Powers Act.

The company now expects gross tariff costs of $2.5 billion–$3.5 billion in 2026, down from the earlier estimate of $3.0 billion–$4.0 billion. GM also maintained an adjusted EPS guidance range of $11.50–$13.50, with a midpoint of $12.50, above the analyst consensus of $12.24.

Possible Market Effect:

The earnings beat and higher EBIT guidance are positive for GM’s fundamentals, but the stock decline suggests investors remain cautious about tariff costs, weaker year-over-year revenue, and execution risk. The reaction may keep pressure on auto-sector sentiment despite stronger profit guidance.

Source: General Motors Q1 2026 Earnings Release; market data