The Nasdaq led US stocks lower on Wednesday after lackluster Alphabet and Tesla earnings stirred up worries that Big Tech's power to fuel gains is fading.
The benchmark S&P 500 (^GSPC) tumbled about 1.7%, and the Dow Jones Industrial Average (^DJI) dropped about 0.8%. The tech-heavy Nasdaq Composite (^IXIC) led the losses, falling nearly 3%.
Stocks are sinking as investors digest mixed quarterly earnings from Google parent Alphabet (GOOGL, GOOG) and Tesla (TSLA), the first of the "Magnificent 7" megacaps to report. EV maker Tesla's stock price slid more than 10%, while Alphabet shares dropped nearly 5%.
Chip stocks also tumbled on Wednesday as Nvidia (NVDA) fell roughly 5% while Broadcom (AVGO) and Arm (ARM) each dropped 6%.
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