The Nasdaq led US stocks lower on Wednesday after lackluster Alphabet and Tesla earnings stirred up worries that Big Tech’s power to fuel gains is fading.
The benchmark S&P 500 (^GSPC) slipped about 1.4%, and the Dow Jones Industrial Average (^DJI) dropped about 0.9%. The tech-heavy Nasdaq Composite (^IXIC) led the losses, falling about 2.1%.
Stocks are sinking as investors digest mixed quarterly earnings from Google parent Alphabet (GOOGL, GOOG) and Tesla (TSLA), the first of the “Magnificent 7” megacaps to report. EV maker Tesla’s stock price slid more than 12% in morning trading, while Alphabet shares dropped about 4%.
Investors are bracing for the next wave of earnings to flood in, with Chipotle (CMG), Ford (F) and IBM (IBM) due to post results after the bell on Wednesday.
In economic news, on Wednesday fresh data from S&P Global showed the business activity in the US grew at its fastest pace in more than two years. Next up are Thursday’s second-quarter GDP print and Friday’s key release on June PCE inflation, the report favored by the Federal Reserve.
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