The Nasdaq dropped more than 3%, fueled by a selloff in Tesla and Alphabet shares after earnings. The Dow lost 500 points and the S&P 500 dropped 2%.
US stocks dropped on Wednesday, led by a steep sell-off in the tech sector after the first batch of mega-cap earnings disappointed investors.
The major indexes all ended the day lower, with the Nasdaq Composite falling more than 3% to notch its worst trading day in since 2022. The S&P 500 dropped more than 2% and the Dow Jones Industrial Average lost more than 500 points.
Investors were shaken after Tesla and Alphabet reported financials for the second quarter. Tesla shares dropped 12% after the carmaker missed earnings estimates and logged a big drop in auto revenue.
Alphabet shares, meanwhile, fell 5% after the Google parent beat on earnings but reported weaker ad revenue from YouTube and rising capital expenditures during the quarter.
Other mega-cap tech stocks also tumbled in Wednesday’s session as investor sentiment soured.
