US stock market tumbled on Wednesday dragged by a sell-off in megacap technology stocks after disappointing earnings from Google parent Alphabet and electric vehicle maker Tesla. A disappointing start of the megacap earnings season fueled concern over the recent bull rally that was fuelled by the artificial-intelligence frenzy.
The S&P 500 and Nasdaq ended at multi-week lows, with the S&P snapping one of its longest streaks without a daily decline of more than 2%. The Nasdaq Composite also posted its largest single-day percentage decline since October 2022 to finish at its lowest point since June 10. The Dow Jones Industrial Average closed below 40,000 points for the first time in two weeks.
On Wednesday, the Dow Jones Industrial Average declined 504.22 points, or 1.25%, to 39,853.87, while the S&P 500 dropped 128.61 points, or 2.31%, to 5,427.13. The Nasdaq ended 654.94 points, or 3.64%, lower at 17,342.41.
Tesla shares slumped 12.3% in its worst single-day fall since September 2020, after the EV maker missed profit estimates and the delay in Robotaxi.
Alphabet share price dropped 5%, its worst finish since May 31, after the company flagged high capital expenses for the year and slowdown in advertising-growth.
Among other stocks, Super Micro Computer Inc. tanked 9.15%, Nvidia shares declined 6.8%, and Broadcom share price plunged 7.6%. Meta Platforms stock price dropped 5.6%, Microsoft Corp. shares slid 3.6%, and Apple stock dipped 2.9%
The selloff sent a Bloomberg index of the so-called Magnificent Seven technology stocks down 5.9%, falling below its average price for the past 50 days for the first time since May. The index is up 33% since the start of the
Meanwhile, Microsoft Corp. is scheduled to report its financial results on July 30, followed by Meta Platforms Inc., Apple Inc. and Amazon.com Inc. later in the week. Nvidia, the biggest beneficiary of AI spending, will be the last to report on August 28, Bloomberg reported.
(With inputs from Agencies)
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First Published:
25 Jul 2024, 08:28 AM IST
HomeMarketsStock MarketsNasdaq drops over 3% to post its worst day since 2022; Alphabet, Tesla, other tech stocks lead sell-off