The stock market took a major hit on Wednesday, plunging into chaos as major tech companies reported disappointing earnings, resulting in the worst single-day decline in nearly two years. The Nasdaq fell by a staggering 3.6 percent, the S&P 500 was down by 2.31 percent, and even the Dow Jones saw a 504.2-point drop.
- Influence of Tech Giants:
- Tesla and Alphabet, the parent company of Google, were among the culprits behind the market meltdown. Their lackluster second-quarter results fell short of analysts’ expectations, sparking concerns among investors. These two companies, alongside Amazon, Apple, Meta, Microsoft, and Nvidia, make up the “Magnificent Seven” – a group of mega-cap stocks that heavily influence market performance.
- Stock Performance:
- Tesla reported a significant drop in profit, leading to a 12.3 percent decline in its stock. Conversely, Alphabet’s profits fared slightly better in Q2, but the stock still saw a 5 percent drop, potentially due to underwhelming YouTube ad sales. Other tech giants like Meta and Microsoft also experienced declines in share prices, adding to the overall economic turmoil.
- Impact on the Market:
- The economic turbulence witnessed on Wednesday raises concerns as the 2024 presidential election approaches. Economic worries are expected to sway voters’ decisions, with a significant portion of Americans expressing discontent with the country’s economic direction. Despite these concerns and the stock market plunge, the market remains at an all-time high.
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