Wednesday’s trading session saw sharp declines for the S&P 500 and Nasdaq Composite, driven by disappointing quarterly reports from Alphabet and Tesla.
Wall Street falls again after having their worst day in two years. The Dow Jones is up 0.4%, the S&P 500 is down 0.9% and the Nasdaq is having another bad day with a 0.3% loss.
The actions of Ford Motor plunged 15% after the company’s second-quarter earnings came in much lower than analysts expected. CHipotle, on the other hand, rose 3% after beating profit and revenue expectations as it saw increased traffic at its restaurants. American Airlines sank 7% after cutting its forecast.
Investors also weighed in on a second-quarter U.S. GDP report that showed economic growth of 2.8%, much stronger than expected. Economists polled by Dow Jones had anticipated growth of 2.1%.
Wednesday’s trading session saw sharp declines for the S&P 500 and the Nasdaq Compositedriven by disappointing quarterly reports from Alphabet and Tesla.
Wall Street: What the market is analyzing
This led to other major tech stocks and AI darlings, such as Nvidia and Microsoft, falling out of favor. Both the broad market index and the tech index posted their worst session since 2022, while the Dow Jones Industrial Average lost about 504 points by the end of the day.
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NYSE
Investors have seen the recent declines as a sign of a late correction in an overbought market, which is now seeing a rotation out of big tech stocks and into small-cap stocks and more cyclical areas of the market.
While some big names in tech missed expectations this week, a generally positive earnings season so far is keeping investors excited. More than 25% of companies in the S&P 500 have reported second-quarter earnings, according to FactSet data.
Source: Ambito
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