Nasdaq Leads US Stock Decline Amid Concerns Over Alphabet and Tesla Earnings

US stocks fell on Wednesday as disappointing earnings from Alphabet and Tesla raised concerns about the sustainability of Big Tech’s market influence.

The S&P 500 declined by approximately 1.4%, while the Dow Jones Industrial Average dropped around 0.9%. The Nasdaq Composite, which is heavily weighted towards technology stocks, experienced the steepest decline, falling about 2.1%.

Investor sentiment soured following mixed quarterly earnings reports from Alphabet, the parent company of Google, and electric vehicle maker Tesla. Tesla’s stock plummeted over 12% in morning trading, while Alphabet shares fell approximately 4%.

Investors are preparing for the upcoming earnings reports from Chipotle, Ford, and IBM, scheduled to be released after market close on Wednesday.

In economic updates, new data from S&P Global indicated that business activity in the US expanded at its quickest rate in over two years on Wednesday. Looking ahead, Thursday will bring the release of second-quarter GDP figures, followed by Friday’s crucial report on June PCE inflation, which is closely monitored by the Federal Reserve.