Stocks got pummeled yesterday, with the Dow Jones Industrial Average having its worst month since September 2022 and the other major averages recording their worst months of 2024. Bonds didn’t do much better as Treasuries slid the most in 14 months.

Most markets are flat today ahead of this afternoon’s Federal Reserve meeting statement and press conference with Fed Chair Jay Powell. The Fed won’t cut (or raise) rates. But investors are on pins and needles awaiting any guidance from the Fed on whether it’s still leaning toward easing monetary policy later in 2024.

Chip stocks are...dare I say it...CRUMBLING in the wake of earnings reports from momentum darlings Advanced Micro Devices Inc. (AMD) and Super Micro Computer Inc. (SMCI). It wasn’t that the news was bad – just that it wasn’t good enough to match ultra-high expectations.

AMZN, SMCI, AMD, SBUX (1-Month % Change)
Source: Yahoo Finance

Case in point: AMD forecast $4 billion in AI-related chip sales this year, missing some forecasts. SMCI fell a bit short of fiscal Q3 sales estimates. The big sector behemoth Nvidia Corp. (NVDA) doesn’t report until May 22, but given that the benchmark Philadelphia semiconductor index sports a lofty P/E of 26X, investors will be hoping it doesn’t disappoint, too.

In other earnings news, Starbucks Corp. (SBUX) whiffed badly on Q2 earnings thanks to lackluster same-store sales growth and disappointing acceptance of new menu items. Its loyalty program member count also slipped in the quarter. Shares of the coffee giant plunged more than 15% in early trading.

On the brighter side, Inc. (AMZN) turned in Q1 profit per share of 98 cents – topping estimates for 84 cents. Revenue rose 17% to $25 billion at its Amazon Web Services division, also beating forecasts, while operating income beat estimates by $4 billion. Shares rose modestly as a result.