NASDAQ traded lower Wednesday as investors were underwhelmed by quarterly reports from mega-cap tech companies Alphabet and Tesla.
Futures for the Dow Jones Industrials tumbled 177 points, or 0.4%, to 40,438.
Futures for the S&P 500 index erased 46.25 points, or 0.8%, at 5,553.
Futures for the NASDAQ Composite dropped 255.75 points, or 1.3%, to 19,669.25.
Shares of Google parent company Alphabet fell 3.4% in pre-market trading. Although Alphabet reported a top and bottom line beat, YouTube advertising revenue fell below the consensus estimate. Meanwhile, Tesla shares declined more than 8% on weaker-than-expected results and a 7% year-over-year drop in auto revenue.
Those reports mark investors’ first look at how mega-cap companies fared during the second quarter. Reports from these names are of special interest to Wall Street as this small cohort is responsible for the bulk of this year’s gains.
More than 20% of the S&P 500 companies have reported their second-quarter earnings, with 80% of them topping 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 rising confidence in a soft landing, the market has continued its rally, with rate-sensitive sectors such as small caps and industrials rising in recent weeks.
In Japan, the Nikkei 225 dipped 1.1% Wednesday, while in Hong Kong, the Hang Seng index lost 0.9%.
Oil prices gained 83 cents to $77.79 U.S. a barrel.
Gold prices fell $11.70 to $2,419.00.
