Nasdaq tracks for worst day since 2022 after Alphabet and Tesla fail to impress Wall Street
CNN
Shares of tech companies slid Wednesday after lackluster earnings reports from two of the market’s most prominent heavyweights.
Shares of tech companies slid Wednesday after lackluster earnings reports from two of the market’s most prominent heavyweights. The Nasdaq Composite declined 2.8%, on pace for its worst daily percentage decline since December 2022. The S&P 500 fell 1.7% and the Dow lost 0.9%. Big Tech’s decline comes after Tesla’s second-quarter results released Tuesday evening showed a second-straight decline in quarterly profit and that its profits plunged more than 40% from a year ago. The electric vehicle maker faces growing competition from established automakers domestically and internationally and a slowdown in EV sales growth. Tesla shares fell 10.8% on Wednesday. The EV-maker didn’t give a new sales forecast for the year but warned that its vehicle volume growth rate this year could be substantially lower than that of 2023. Elsewhere, Alphabet shares slid 4.7% after reporting a miss on expectations for YouTube advertising revenue. Thursday’s tumble extends the decline in tech stocks seen during the past week after a cool inflation report and resilient economic data led investors to bet that the Federal Reserve will cut interest rates in September.