US stocks were mixed as traders braced for GDP data and higher profits

• U.S. stocks traded mostly lower on Wednesday as traders eyed the release of first-quarter GDP data.

• Investors are sifting through the profits, and megacap tech results are pouring in.

• Tesla rebounded Wednesday as traders cheered news of a cheaper vehicle model in the works.

U.S. stocks were mostly lower on Wednesday as traders prepared for the release of first-quarter GDP data and digested the latest round of corporate earnings.

Investors await advanced estimates for first-quarter GDP tomorrow morning. This will give markets an idea of ​​how strong the economy is growing and point to the Federal Reserve’s next move.

The US is expected to have grown 2.7% in the first three months of the year, but a particularly strong print would raise the risk that the Fed will keep policy tight to prevent inflation from rising, according to Atlanta Fed economists regains its footing.

According to CME’s FedWatch tool, markets are pricing in just one or two rate cuts this year, compared to as many as seven rate cuts in early 2024.

Investors are also preparing for more earnings results, which have been resilient so far this quarter. According to FactSet, the S&P 500 appears on track to deliver 7% annualized earnings growth. Of the companies that have reported financials to date, 74% have exceeded earnings expectations.

Facebook parent company Meta Platforms will report after the closing bell, while Microsoft and Alphabet will report results after the close on Thursday.

Shares of Tesla soared 11% higher on Wednesday after the automaker’s latest earnings report. Sales fell short of expectations, but investors were pleased with the company’s confirmation that a low-cost electric car would come to market sometime next year.

Here’s where the US indexes stood at 4pm on Wednesday:

Here’s what else is going on:

In commodities, bonds and crypto:

• West Texas Intermediate crude fell 0.5% to $82.91 a barrel. Brent crude, the international benchmark, fell 0.3% to 88.13 per barrel.

• Gold fell to $2,332 an ounce.

• The yield on ten-year government bonds rose by four basis points to 4.644%.

• Bitcoin fell 3.29% to $64,393.

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