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* Boeing falls on record annual losses, to delay the 777X aircraft
* Microsoft rises after optimistic quarterly results
* GameStop Rally cancels hedge funds and explodes
* Dow 1.54%, S&P 500 1.93%, Nasdaq 1.64% (Add a Fed statement, change by line)
NEW YORK, Jan 27 (Reuters) – US stocks fell more than 1% on Wednesday, showing little reaction to the latest Fed statement, as major indices were partly affected by the fall of Boeing and hedge funds that sold long positions to cover a short straitjacket.
Shares of video game distributor GameStop Corp and filmmaker AMC Entertainment Holdings Inc. doubled every Wednesday, continuing a torrid rise over the past week as amateur investors piled up again. actions, forcing short sellers like Citron to give up losing bets.
“There are fears that some mutual funds may quickly close positions as a way to strengthen their cash positions. These are still early days, but we may see the selling pressure increase for fear that there may be a stampede for on the way out, ”said David Madden, market analyst at CMC Markets UK.
The shares largely held losses as a result of the Federal Reserve statement. The central bank kept interest rates overnight close to zero and made no change in monthly bond purchases, as was widely expected, and pledged to keep this support intact until a rebound occurs. complete economic.
“The statement itself did not contain much new information, but it did dispel fears that the Fed was considering reducing asset purchases earlier than expected. In any case, the Fed added a statement acknowledging that the pace recovery has moderated in recent months, ”said Jason Pride, Glenmede’s main private wealth investment office in Philadelphia.
The Dow Jones Industrial Average fell 475.41 points, or 1.54%, to 30,461.63, the S&P 500 lost 74.39 points, or 1.93%, to 3,775.23, and the Nasdaq Composite fall 223.16 points, or 1.64%, to 13,402.91.
Both the Dow and the S&P 500 were on track for their highest daily percentage since Oct. 28.
Meanwhile, Boeing Co. fell 2.56% and ranked among the Dow’s top attractions after the aircraft maker took a heavy $ 6.5 billion payload on its new 777X aircraft due to the COVID-Pandemic. 19 and the aftermath of a two-year security crisis his 737 MAX.
In a week full of quarterly profits from mega-boss companies, Microsoft Corp. rose 0.83% after its results as the software maker continues to benefit from remote learning and work-level trends. world.
Microsoft’s results set a positive tone for other technology-related companies, such as Apple Inc. and Facebook Inc., which will have to report quarterly numbers later.
These heavy companies have recently returned to favor following the explosive results of broadcast giant Netflix Inc., and as investors left banks linked to the economy, energy and small-cap stocks.
However, concern over increased stock market valuations, rising coronavirus cases and the uneven distribution of vaccine deployments have increased investor concern about a decline and increased short-term volatility.
Shares of Apple changed little, while Facebook fell 2.56%.
The CBOE market volatility index, which is often used as an indicator of investor anxiety, rose to 29.65, its highest level since December 21st.
Walgreens Boots Alliance Inc. jumped 4.80% after the pharmacy chain appointed Starbucks outgoing chief operating officer Roz Brewer as CEO.
Declining problems outperformed NYSE advances by a ratio of 3.40 to 1; on the Nasdaq, a ratio of 3.52 to 1 favored declines.
The S&P 500 recorded 27 new highs of 52 weeks and no new lows; the Nasdaq Composite recorded 155 new highs and 20 new lows. (Additional reports by Devik Jain and Shreyashi Sanyal in Bengaluru; Diane Craft edition)