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Stocks fell Wednesday as investors were underwhelmed by quarterly reports from mega-cap tech companies Alphabet and Tesla
The Dow Jones Industrials decreased 361.83 points to 39,996.20.
The S&P 500 index subtracted 80.09 points, or 1.4%, to 5,475.65.
The NASDAQ tumbled 373.51 points, or 2.1%, to 17,623.84
Shares of Google parent company Alphabet fell nearly 4%. Although Alphabet reported a top and bottom line beat, YouTube advertising revenue fell below the consensus estimate. Meanwhile, Tesla shares declined 12% on weaker-than-expected results and a 7% year-over-year drop in auto revenue.
Other mega-cap tech stocks fell in sympathy with Alphabet and Tesla. Nvidia and Meta Platforms lost 3% each, while Microsoft slid 2%.
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.
So far, though, the earnings season overall is off to a strong start. More than 25% of S&P 500 companies have reported their second-quarter earnings, with roughly 80% of them topping expectations.
Adding to investor concerns on Wednesday morning was weaker-than-expected U.S. manufacturing data. The U.S. PMI flash manufacturing output index fell to 49.5 in July, unexpectedly slipping into contraction territory as new orders, production and inventories declined.
Economists had forecast a reading of 51.5, according to Dow Jones.
Prices for the 10-year Treasury gained ground, lowering yields to 4.23% from Tuesday’s 4.25%. Treasury prices and yields move in opposite directions.
Oil prices recovered 37 cents at $77.33 U.S. a barrel.
Gold prices jumped $15.80 to $2,423.10.
