A wipeout on Wall Street has US stock indexes heading for their worst losses since 2022, as Big Tech drags the market lower following profit reports from Tesla and Alphabet that weren’t impressive enough. The S&P 500 slumped 2 per cent and was on track for its fifth drop in the last six days. The Dow Jones was down 1 per cent and the Nasdaq composite was 3.
3 per cent lower. The Australian sharemarket is set to tumble, with futures at 4.55am AEST pointing to a loss of 66 points, or 0.
8 per cent, at the open. The ASX shed 0.1 per cent on Wednesday.
Wall Street is on its way to its worst day since 2022. Credit: Reuters Tesla was one of the heaviest weights on the market after tumbling 10.8 per cent.
The electric vehicle maker said its profit for the spring weakened by 45 per cent from a year earlier, and its earnings fell short of analysts’ forecasts. Alphabet dropped 5.2 per cent even though it delivered better profit and revenue for the latest quarter than expected.
Analysts pointed to some pockets of weakness underneath the surface, including weaker growth in advertising revenue for YouTube than expected. The larger challenge for Alphabet may have simply been how much its stock has already rallied, nearly 50 per cent in the 12 months through Tuesday, on expectations for continual growth. Loading Profit expectations are high all along Wall Street, but particularly so for the small group of stocks known as the “Magnificent Seven.
” Alphabet, Amazon, Apple, Meta Platforms.