The Nasdaq Composite fell 2%, while the S&P 500 dropped 1.1%. The Dow Jones Industrial Average lost 152 points, or 0.4%. It just so happens that two giants disappointed the market and are responsible for the fall.
The big tech put the markets in a difficult situation. Shares of Tesla and Google’s parent company Alphabet are falling after disappointing results, dragging down the Nasdaq Compositewhich is largely composed of techno actions.
In Europe, LVMH’s results did not meet expectationsleading to a slump in luxury stocks across the continent. In addition, Deutsche Bank shares declined after Germany’s largest lender deflated hopes of a share buyback.
The Nasdaq Composite fell 2%, while the S&P 500 dropped 1.1%. The Dow Jones Industrial Average lost 152 points, or 0.4%.
Shares of Google parent company Alphabet fell more than 4%. While Alphabet reported better-than-expected results on revenue and profit, YouTube advertising revenue fell short of the consensus estimate. Meanwhile, Tesla shares declined more than 10% on weaker-than-expected results and a 7% drop in auto revenue compared with last year.
The drag of the two giants
Other large-cap tech stocks fell in line with Alphabet and Tesla. Nvidia and Meta Platforms each lost more than 3%, while Microsoft fell 1%.
Wall Street markets
Reuters
These reports mark investors’ first glimpse into how large-cap companies fared during the second quarter. Reports from these companies are of particular interest to Wall Street, since this small group is responsible for most of this year’s profits.
So far, earnings season has started off strong. More than 25% of S&P 500 companies have reported second-quarter results, with about 80% of them beating expectations, according to FactSet data. Wall Street is coming off a losing session, with the major averages pulling back slightly.
Investors have largely priced in the chances of the Federal Reserve cutting interest rates at its September meeting. Combined with growing confidence in a soft landing, the market has continued its rally, with rate-sensitive sectors such as small businesses and industrials rising in recent weeks.
Source: Ambito
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