25.07.2024. / 11:39
NEW YORK – On Wall Street, stock indexes fell sharply. The business results of Alphabet and Tesla caused a sell-off in the stocks of technology companies.
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The Dow Jones index slipped 1.25 percent, to 39,853 points, while the S&P 500 fell 2.31 percent, to 5,427 points, and the Nasdaq 3.64 percent, to 17,342 points. The biggest daily drop in the S&P 500 and the Nasdaq index since 2022 is the result of weaker-than-expected business results from two tech giants – Tesla and Alphabet.
Granted, Alphabet’s revenue and earnings were in line with expectations, but as revenue from YouTube advertising fell short of expectations, the tech giant’s share price fell 5 percent.
Tesla’s stock fell even more, more than 12 percent, after the electric vehicle maker reported lower-than-expected earnings and a 7 percent drop in revenue from car sales.
The prices of these actions, as well as of other technological giants from the group of so-called The Magnificent Seven have rallied strongly in recent months, buoyed by investors’ hopes for strong revenue and earnings growth.
Therefore, any result that is below expectations can cause a sharp drop in the prices of these shares. Share prices of other tech giants Apple, Microsoft, Amazon.com, Meta Platforms and Nvidia fell between 2.9 and 6.8 percent yesterday.
“Some investors decided to withdraw some of the earnings from the market because they are concerned about the further business reports of the companies”says Dave Grecsek, strategist at Aspiriant.
And on the European stock exchanges, share prices fell yesterday. The London FTSE index weakened by 0.17 percent, to 8,153 points, while the Frankfurt DAX slipped 0.92 percent, to 18,387 points, and the Paris CAC dropped 1.12 percent, to 7,513 points, reports Tanjug.
Source: www.capital.ba
