Tech Titans' Wobble Sends Markets Spiraling

The S&P 500 and Nasdaq hit multi-week lows due to disappointing earnings from Alphabet and Tesla, causing the S&P 500 to see its worst one-day performance since December 2022. Investor confidence in megacap names waned, impacting sectors like Communication Services and Consumer Discretionary. The market reaction underscores the high stakes for megacap tech stocks.

The S&P 500 and Nasdaq dipped to multi-week lows on Wednesday, driven by lackluster earnings from Alphabet and Tesla. This wiped out the S&P 500's lengthy streak without a significant daily decline, rattling investor confidence in major technology stocks.

Upon the release of quarterly numbers from the first of the 'Magnificent Seven' stocks, investors sought confirmation of lofty valuations. The disappointing performance led to the S&P 500 marking its worst day since December 2022, falling 2.3%—its first 2% decline in 356 sessions.

The Nasdaq Composite also suffered, recording its largest single-day percentage decline since October 2022. Tesla and Alphabet were significant drags, depressing sector indexes. Even the blue-chip Dow couldn't escape the downturn, closing below 40,000 points for the first time in two weeks.

(With inputs from agencies.)