Nasdaq falls sharply amid major technology earnings problems
Date
7/25/2024 8:46:27 AM
(MENAFN) Wall Street experienced a significant downturn on Wednesday, with the technology-heavy nasdaq Composite index leading the decline following disappointing quarterly earnings from major tech giants Tesla and Alphabet. These results have cast doubt on the continued dominance of big tech companies and the ongoing artificial intelligence boom, prompting a broader market sell-off. The Nasdaq Composite Index fell by 263.44 points, or 1.46 percent, closing at 17,733.91 points, reflecting investor concerns over the sector's growth prospects.
The Dow Jones Industrial Average also saw a decline, dropping 147.46 points, or 0.37 percent, to settle at 40,210.63 points. Similarly, the Standard & Poor's 500 Index fell 49.90 points, or 0.90 percent, ending at 5,505.84 points. The overall market was weighed down by the poor performance of technology stocks, which experienced notable losses across the board. Tesla shares plummeted by 12 percent, while Alphabet's stock fell by 3.5 percent. Other major tech companies also faced declines, with Meta decreasing by 3.35 percent, Nvidia by 3.2 percent, Microsoft by 1.5 percent, Apple by 1.9 percent, and Amazon by 0.6 percent.
The combined impact of these declines in tech stocks contributed to a broader negative sentiment in the market, reflecting investor skepticism about the sustainability of growth in the technology sector and the future trajectory of artificial intelligence investments. This market reaction highlights the sensitive nature of investor confidence in tech-driven economic trends and underscores the potential volatility associated with the sector's earnings reports.
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