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Today’s stock market: real-time updates

Broadcast United News Desk
Today’s stock market: real-time updates

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Traders work on the floor of the New York Stock Exchange on June 18, 2024.

Spencer Pratt | Getty Images News | Getty Images

Stocks fell on Wednesday after weak earnings from two major technology companies dampened investor confidence. Nasdaq Composite Index It is on track to be the worst day since December 2022.

The tech-heavy Nasdaq fell 3.1%, while S&P 500 Down 1.9%. Dow Jones Industrial Average Down 366 points, or 0.9%.

Google’s parent company shares letter Although Alphabet reported revenue and profit that beat expectations, YouTube ad revenue drops Lower than generally expected. Tesla The stock price fell 11% due to the performance that was lower than expected. Down 7% year-on-year Car income.

Other major tech stocks also followed Alphabet and Tesla in the decline. Nvidia and Meta Platform Each fell 5%, while Microsoft Down 4%.

The reports mark the first time investors will get a glimpse into how large-cap companies performed in the second quarter. The reports are particularly attractive to Wall Street because the bulk of this year’s gains have come from this small group of companies.

“One of the quickest ways for a rotation to happen behind the scenes is an earnings miss from the Big Seven,” wrote Ryan Grabinski, a strategist at Strategas. “We’ve been discussing how ‘AI enthusiasm’ will eventually turn into ‘AI disappointment.’ The next two weeks will be key.”

The rotation into small-cap stocks appears to remain strong. Russell 2000 The small-cap index fell 0.6% during Wednesday’s session but is up 9% for the month. In comparison, the Dow Jones Industrial Average rose 2% on a monthly basis, the S&P 500 was unchanged and the tech-heavy Nasdaq fell more than 1%.

Despite the weak performance of the big tech giants, the earnings season has started strongly overall. More than 25% of S&P 500 A number of companies have reported second-quarter earnings, with about 80% beating expectations, according to FactSet.

Adding to investors’ concerns Wednesday morning was US manufacturing data weaker than expected.

The U.S. manufacturing output index fell to 49.5 in July, unexpectedly falling into contraction territory due to declines in new orders, production and inventories. Dow Jones said economists had expected the index to be 51.5.

Wednesday’s report also showed new home sales Lower than economists expected June.

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