The Dow Jones Industrial Average fell 1% or 337 points and the Nasdaq rose 0.4%. The S&P 500 fell 0.4% to close in correction territory at 4,118.93.

S&P 500 closes in correction territory as tech bid fades despite Amazon, Intel surge

The S&P 500 has racked up a more than 10% loss from its July peak of 4,588.96 to close in correction territory as tech gave up some gains despite a rally in Amazon and Intel.

Amazon (NASDAQ:AMZN) rose more than 6% after the tech giant reported third-quarter results that topped Wall Street estimates.

“Amazon remains one of the best earnings growth stories in the market heading into 2024,” Deutsche Bank said, pointing to signs that Amazon’s cloud business is set for a reacceleration.

Intel Corporation (NASDAQ:INTC), meanwhile, jumped more than 9% as the chipmaker’s blowout Q3 earnings and lift on earnings guidance drew praise from Wall Street.

Intel’s gross margin outlook “came in much closer to our above-Street estimates, reinforcing our confidence in a stronger GM recovery in 2024 than currently contemplated by consensus,” Deutsche Bank said.

Oil majors Chevron, Exxon Mobil slip on mixed quarterly results

Exxon Mobil and Chevron fell 2% and nearly 7% respectively, dragging the broader energy sector lower after reporting disappointing quarterly results.

Exxon Mobil Corp (NYSE:XOM) Q3 results missed Wall Street estimates on both the top and bottom lines, wedged down by weaker performance in its upstream segment, which includes the exploration and production stages.

Chevron Corp (NYSE:CVX), meanwhile, reported a miss on earnings as lower margins on refining business.

Inflation continues to ease, but consumer spending comes in hot

The core price consumer expenditure index, a measure of inflation closely watched by the Fed, slowed to 3.7% in the 12 months through September, as expected, from a 3.9% pace the prior month.

While ongoing signs of the slowing inflation will provide the Fed with further evidence that its restrictive monetary policy measures are having the desired impact, the stronger-than-expected pace of consumer spending seen last month could muddy the Fed’s thinking on policy.

At a speech at Economic Club of New York luncheon on Oct. 19, Powell warned that above-trend economic growth could “put the progress of inflation at risk and justify further tightening of monetary policy,” the Fed chief said.

Ford falls after withdrawing guidance as UAW strikes dent Q3 earnings

Ford Motor Company (NYSE:F) fell more than 12% after the automaker withdrew its full-year guidance following third-quarter results that fell short of Wall Street estimates as UAW strikes made a big dent to growth.

“The UAW impact was $100M in Q3 .. but $1.3B to date,” RBC said in a note.

JPMorgan slips as CEO Jamie Dimon set to offload 1 million shares

JPMorgan Chase & Co (NYSE:JPM) fell more than 3% as chief executive Jamie Dimon is set to sell 1 million shares starting next year, the bank said in a regulatory filing this week.

Dimon and his family’s stake in the bank, which is currently about 8.6 million shares, “will remain very significant,” the bank added.