Chip Stocks Stumble Amid Earnings Season

U.S. stock indexes fell as chip stocks saw significant declines. Despite tech giants Microsoft and Meta reporting strong earnings, shares of Alphabet rose notably, offsetting some of the negative sentiment. In contrast, Super Micro saw significant losses. The U.S. economic figures showed lower GDP growth than expected.

U.S. stock markets saw a decline on Wednesday, primarily driven by a tumble in chip stocks and anticipation of multiple corporate earnings reports.

Tech leaders Microsoft and Meta Platforms reported higher-than-expected revenues post-market close. Notably, Alphabet's stock rose by 2.8% after surpassing third-quarter revenue estimates, helping to balance the declines in chip stocks affected by bleak forecasts from companies like Advanced Micro Devices and Qorvo.

Super Micro Computer's shares plummeted 32.6% following the resignation of Ernst & Young as its accountant. The information technology sector recorded the largest decline, dropping 1.34%, while the communication services sector experienced gains due to Alphabet's performance. Investors also focused on U.S. economic data showing a rise in GDP by 2.8% and a surge in private payrolls growth, alongside political updates ahead of the presidential election.

(With inputs from agencies.)