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Major stocks fell sharply on Wednesday after several companies reported disappointing earnings, sparking a selloff in the technology sector and the biggest carnage on Wall Street in nearly two years.
By market close, Nasdaq It has fallen by a whopping 3.6 percent. Standard & Poor’s 500 The Nasdaq fell 2.31 percent — the worst one-day decline for either index since October and December 2022, respectively. The Nasdaq was at 17,342.41 at market close, while the S&P 500 was at 5,427.13.
The Dow Jones also fell 504.2 points — or more than 1 percent — to 39,853.87.
The decline could be attributed to disappointing second-quarter results. From Tesla And the alphabetAlthough neither report was catastrophic, the fact that it fell short of analysts’ expectations may have worried investors.
The two companies are part of the “Big Seven,” a group of large-cap stocks that are considered the most influential in the market. Other companies in the elite group include Amazon, Apple, Meta, Microsoft, and Nvidia.
Any major disruptions in any company affect the overall performance of the market.
Tesla was one of the biggest stocks to weigh on U.S. indices after reporting a 45% drop in second-quarter earnings. Its stock performance on Wednesday reflected that decline, falling 12.3%.
However, Alphabet reported slightly better earnings in the second quarter, but its shares fell 5% — perhaps due to shortcomings in YouTube ad sales.
Other tech companies, including Meta and Microsoft, saw their shares fall. Shares of the parent company of Facebook and Instagram fell 5.61%, while Microsoft shares fell 3.59%.
Wednesday’s economic turmoil comes on the heels of the 2024 presidential election, where economic concerns are expected to play a major role in voters’ decisions.
About 64 percent of Americans believe the economy is on the wrong track, according to a poll. Reuters/Ipsos poll. This figure is consistent with other surveys. From Gallup, Harvard polls, Pew Research Center Another found that the economy and inflation were top priorities for potential voters.
Despite the public’s concern and the market’s decline on Wednesday, it is still at its highest levels ever.