U.S. Stock Indexes Fall on Tech Earnings

U.S. equity markets experienced significant declines on Wednesday, primarily driven by disappointing earnings reports from major technology companies, particularly Tesla and Alphabet, both part of the 'Magnificent Seven' group. The Nasdaq Composite fell 2.8%, while the S&P 500 and Dow Jones Industrial Average decreased by 1.7% and 0.8%, respectively. Tesla saw an 11% drop after reporting a 45% decline in profits, its worst performance since January, while Alphabet's stock fell 4.4% despite beating profit expectations, hindered by lower-than-expected YouTube advertising revenues. Analysts noted that the weak earnings from these tech giants raised concerns about whether the market's record valuations are sustainable. The overall sentiment was further compounded by a cautious outlook on AI investments from Alphabet and the delay of Tesla's Robotaxi event. As investors await upcoming earnings reports and economic data, market sentiment remains uncertain and cautious.