S&P and Nasdaq fall to multi-week lows as Tesla, Alphabet weigh

by Lisa Pauline Mattackal and David French, Reuters

The S&P 500 and Nasdaq slumped to multi-week lows on Wednesday after Tesla and Alphabet disappointed with lackluster earnings, prompting investors to question if the Big Tech- and AI-fueled 2024 equity rally was sustainable in the long run.

As the first of the Magnificent Seven stocks reported quarterly numbers, investors had been awaiting new data to see if lofty valuations were justified. With these seven companies having such sway over markets, their performance was bound to have wider repercussions.

The benchmark S&P 500 (.SPX), opens new tab touched its lowest since July 1, and the tech-heavy Nasdaq Composite (.IXIC), opens new tab fell to a six-week low.

Tesla (TSLA.O), opens new tab weighed heavily, slumping 11.2% and set to lose more than $80 billion in market value at current levels from Tuesday’s close, if losses hold. The electric-vehicle maker reported its lowest profit margin in more than five years and missed second-quarter earnings estimates.

 

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