Stock market has worst day since 2022 as Tesla, Google parent Alphabet sink
U.S. stocks had their worst day since 2022 on Wednesday amid a broad pullback in tech companies as Wall Street traders sought to reduce their exposure to firms that have made big bets on artificial intelligence.
U.S. stocks had their worst day since 2022 on Wednesday amid a broad pullback in tech companies as Wall Street traders sought to reduce their exposure to firms that have made big bets on artificial intelligence.
The tech-heavy Nasdaq index closed down 3.6%, while the broader S&P 500 index closed down 2.3% — both their worst performances in more than 18 months. The Dow Jones Industrial Average fell 1.25%.
The rout was led by Tesla, whose shares fell 12.3% for its worst day since 2020, and Google parent Alphabet, which fell more than 5% for its worst day since January.
Tesla reported Tuesday afternoon that its auto revenues fell 7% compared with the previous quarter, and CEO Elon Musk said in a follow-up earnings call that the company's planned robotaxi rollout would be pushed back.
Although Alphabet reported earnings Tuesday that were in line with analysts' expectations, traders appeared to seize on remarks CEO Sundar Pichai made on the company's earnings call that signaled the tech world's booming investments in artificial intelligence were not going to pay off in a short time frame.
Rating: 5