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Major stocks fell sharply on Wednesday after several companies reported disappointing earnings, triggering a sell-off in technology shares and the biggest bloodbath on Wall Street in nearly two years.
At market close, the x&ved=2ahUKEwi71onNwMCHAxXdrYkEHc4XDukQ3ecFegQIExAf”>Nasdaq had fallen a whopping 3.6 percent and thex&ved=2ahUKEwiX5facwcCHAxWUAHkGHVCRAqcQ3ecFegQILRAf”> S&P 500 Index The Nasdaq index closed at 17,342.41 points, while the S&P 500 closed at 5,427.13 points.
Even the Dow Jones fell 504.2 points (more than 1 percent) and closed at 39,853.87.
The decline can be attributed to disappointing second-quarter results. From Tesla and AlphabetGoogle's parent company. While neither report was disastrous, its lackluster reports, which fell short of analysts' expectations, may have worried investors.
Both companies are part of the “Magnificent Seven,” a group of mega-cap stocks considered the most influential in the market. amazon, Apple, Meta, Microsoft and Nvidia are the other companies that are part of this select group.
Any major disruption to any company impacts overall market performance.
Tesla was one of the main stocks that dragged down US indexes after announcing a 45 percent drop in its second-quarter profit. Its share performance on Wednesday reflected that decline, with a 12.3 percent drop.
Alphabet, however, reported slightly better second-quarter earnings, but its shares still suffered a 5 percent drop, possibly due to its shortcomings in YouTube ad sales.
Other tech companies such as Meta and Microsoft saw their shares fall. facebook and instagram's parent company fell 5.61 percent, while Microsoft fell 3.59 percent.
Wednesday's economic turmoil comes on the heels of the 2024 presidential election, when economic concerns are expected to play a major role in voters' decisions.
About 64 percent of Americans believe the economy is headed in the wrong direction, according to a study Reuters/Ipsos poll. That figure is consistent with other surveys. from Gallup, Harvard Survey, Pew Research Center and others who found that the economy and inflation were the main concerns of potential voters.
Despite public concern and Wednesday's drop, the market remains at an all-time high.
