At the close, the Dow Jones index lost more than 500 points and fell 1.25 percent to 39,853.87 points.
While the S&P 500 index lost 2.32 percent to 5,427.12 points, the Nasdaq index fell by 3.62 percent, falling more than 650 points, to 17,345.84 points. The S&P 500 index had its worst performance since December 2022, while the Nasdaq index had its worst performance since October 2022.
While the financial results of companies are the focus of investors during the intense balance sheet season in the US, the stock markets have been negative after the disappointing financial results of major technology companies such as Alphabet and Tesla.
Shares of US technology giant Alphabet, one of the companies that announced their balance sheets after the markets closed yesterday, lost 5.03 percent of their value due to the company’s revenue and profit exceeding expectations in the second quarter of this year, but YouTube ad revenue falling short of expectations and its failure to make the desired progress in artificial intelligence.
Shares of US electric car manufacturer Tesla also fell 12.33 percent after the company’s financial results announced yesterday failed to meet expectations and it postponed the Robotaxi launch.
Shares of financial services company Visa fell 4 percent after a slowdown in payment volume.
The decline in chip makers’ stocks also stood out, with Nvidia’s shares losing 6.8 percent, Broadcom’s shares losing 7.6 percent, and Arm’s shares losing 8.2 percent.
Analysts said that the financial results of IBM and Ford, which will announce their balance sheets after the markets close, will also be closely monitored.
On the macroeconomic data side, the US manufacturing industry Purchasing Managers Index (PMI) decreased by 2.1 points monthly to 49.5 in July, below market expectations.
New home sales in the US also decreased by 0.6 percent on a monthly basis in June, hitting their lowest level since November 2023, due to high housing prices and mortgage interest rates.
Source: www.dunya.com
