- US stocks tumbled on Wednesday as traders digested weak tech earnings.
- Tesla missed on earnings last quarter, while Alphabet said YouTube ad revenue fell short.
- More mega-cap tech firms are on deck to report results next week.
Thanks for signing up!
Access your favorite topics in a personalized feed while you’re on the go.
US stocks continued their slide on Wednesday, led by a decline in tech stocks after Alphabet and Tesla reported earnings for the second quarter. Major indexes traded lower, with the Nasdaq 100 dipping more than 1%.
Investors mulled a disappointing round of earnings reports on Tuesday, with Tesla missing earnings estimates and Alphabet reporting that its YouTube ad revenue fell short the last quarter. Tesla shares were down 8%, while Alphabet shares fell 4% in early Wednesday trading.
“This is the fourth successive quarter of earnings misses, a first for Elon Musk’s visionary EV maker,” David Morrison, a senior market analyst at Trade Nation, said of Tesla in a note. “The question is how this will affect sentiment going forward? Will today’s sell-off prove to be an isolated, knee-jerk reaction which quickly dissipates? Or could it poison the well as the Q2 earnings season picks up?”
Investors are eyeing a slew of coming high-profile earnings, with Meta, Apple, and Amazon on deck to report their financials next week.
On the economic front, Thursday will see the reveal of second-quarter GDP figures, and the Federal Reserve’s favorite inflation measure will be published on Friday. The personal consumption expenditures index is expected to show inflation continued to cool last month, with prices rising by 2.5%. GDP, meanwhile, is expected to clock in at 2.1%, higher than the revised first quarter reading of 1.4%.
Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Wednesday:
- S&P 500: 5,504.95, down 0.91%
- Dow Jones Industrial Average: 40,214.81, down 0.36% (-157.02 points)
- Nasdaq composite: 17,729.77, down 1.49%
Here’s what else is going on today:
- There’s a big rotation from cash to stocks — and it could help push the S&P 500 up 17% by the end of the year, according to UBS.
- The stock market is approaching 2 catalysts that could help spark the next leg of the bull run.
- The Fed is only going to cut rates once in 2024 as shelter inflation is too high and the job market remains too hot, according to Vanguard.
In commodities, bonds, and crypto:
- Oil futures were up. West Texas Intermediate crude oil rose 0.9% to $77.65 a barrel. Brent crude, the international benchmark, was up 0.7% to $81.57 a barrel.
- Gold inched higher 0.4% to $2,417 per ounce.
- The 10-year Treasury yield dropped two basis points to 4.218%.
- Bitcoin inched up to $66,723.