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#Meta Metaverse Business Suffers Huge Losses for Multiple Quarters, Gold Price Falls for Three Consecutive Days#

US Stocks Mixed as Investors Assess Fed Rate Cut Prospects

Investors continued to assess the prospects for a Fed rate cut on Wednesday, and as Treasury yields rose, the recent rebound in US stocks weakened. The three major stock indices were mixed on the day. At the close, the Dow was down 0.11%, the S&P 500 was up slightly by 0.02%, and the Nasdaq was up 0.10%.

Moody's Downgrades Boeing's Credit Rating to One Step Above Junk

On the company front, Boeing, which has been plagued by safety incidents, released its Q1 2024 earnings report before the market opened on Wednesday, showing that the company's revenue fell 8% year-over-year. However, the decline was better than analysts' expectations, and the loss narrowed. Boeing's stock price opened 5% higher after the earnings report was released. On the same day, international rating agency Moody's downgraded Boeing's credit rating from Baa2 to Baa3, which is just one notch above junk status, with a negative outlook. Moody's expects Boeing to face financial difficulties for the next few years. After the release of the rating report, Boeing's stock price turned lower in Wednesday's trading and ended down 2.87%.

Meta's Financial Metrics Beat Expectations, Stock Price Plunges Over 18% After Hours

Tech giant Meta released its Q1 2024 earnings report after the market closed on Wednesday. The company's revenue, earnings and other metrics all beat expectations, especially the acceleration of advertising revenue growth in its core business. However, the company's second-quarter guidance showed that revenue growth is expected to be significantly lower than market expectations. In addition, the company's previous strategic focus on the metaverse business has been suffering huge losses for multiple quarters. Since the end of 2020, the cumulative loss has reached about $42 billion. After the earnings report was released, Meta's stock price plunged over 18% in after-hours trading on Wednesday.

European Stock Markets Close Lower as a Whole

In Europe, bank stocks and financial services stocks led the decline in many European stock markets, dragged down by negative earnings reports from some leading companies. The three major European stock indices all closed lower on Wednesday. At the close, the UK stock market was down slightly by 0.06%, the French stock market was down 0.17%, and the German stock market was down 0.27%.

Yen Falls Below 155 Against Dollar to New 34-Year Low

In the forex market, the yen came under significant selling pressure as investors bet that the Bank of Japan would stand pat at its interest rate meeting this week, taking advantage of the wide interest rate spread between the US and Japan to engage in carry trades. The yen-dollar exchange rate broke below the 155 yen-per-dollar level on Wednesday, hitting a new 34-year low. At the close of trading on Wednesday, the yen-dollar exchange rate was at 155.347 yen per dollar. Some analysts pointed out that due to the limited room for adjustment in Japanese monetary policy, short-sellers of the yen may continue to test the bottom line of the Japanese government and central bank.

International Oil Prices Fall

In oil, international oil prices fell on Wednesday as US gasoline inventories fell to a two-month low last week, indicating a decline in demand at the consumer end. At the close of trading, the New York Mercantile Exchange's light sweet crude oil futures for June delivery settled at $82.81 per barrel, down 0.66%. London Brent crude futures for June delivery settled at $88.02 per barrel, down 0.45%.

International Gold Prices Fall

In precious metals, international gold prices fell on Wednesday, down for the third consecutive day, pressured by a rising dollar index and rebounding Treasury yields. At the close of trading, New York Mercantile Exchange's gold futures for June delivery settled at $2,338.4 per ounce, down 0.16%