• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Stock

Stock market has worst day since 2022 as Tesla, Google parent Alphabet sink

by July 25, 2024
written by July 25, 2024

U.S. stocks had their worst day since 2022 on Wednesday amid a broad pullback in tech companies as Wall Street traders sought to reduce their exposure to firms that have made big bets on artificial intelligence.

The tech-heavy Nasdaq index closed down 3.6%, while the broader S&P 500 index closed down 2.3% — both their worst performances in more than 18 months. The Dow Jones Industrial Average fell 1.25%.

The rout was led by Tesla, whose shares fell 12.3% for its worst day since 2020, and Google parent Alphabet, which fell more than 5% for its worst day since January.

Tesla reported Tuesday afternoon that its auto revenues fell 7% compared with the previous quarter, and CEO Elon Musk said in a follow-up earnings call that the company’s planned robotaxi rollout would be pushed back.

Although Alphabet reported earnings Tuesday that were in line with analysts’ expectations, traders appeared to seize on remarks CEO Sundar Pichai made on the company’s earnings call that signaled the tech world’s booming investments in artificial intelligence were not going to pay off in a short time frame.

‘I think we are in this phase where we have to deeply work and make sure on these use cases [for AI products], on these workflows, we are driving deeper progress on unlocking value, which I’m very bullish will happen,’ Pichai said. ‘But these things take time.’

Steve Sosnick, chief strategist at Interactive Brokers financial group, said Wall Street took that as a signal to sell off shares that had enjoyed the frenzied growth that tech stocks have been experiencing in recent months.

‘We’re seeing some nervous profit-taking in some of the stocks that have been leveraged to AI that a lot of investors have come to rely on as a consistent source of stock market gains,’ Sosnick told NBC News.

Alphabet also reported weaker-than-expected ad revenue from YouTube, which Google has owned since 2006.

Other major tech names having major losses Wednesday included Nvidia, the computer chip maker powering much of the AI revolution, whose shares fell more than 6% for their worst day since 2022; Facebook parent Meta was down 5%; Microsoft fell 3.5%; and Amazon lost 3%.

The major indices have been on a relatively consistent and positive run. Even after Wednesday’s dip, the S&P 500 remains up 13.8% in 2024, with the Nasdaq up 15.5% and the Dow up 5.7% in that time.

Wednesday’s sell-off comes amid renewed expectations for an interest-rate cut from the Federal Reserve in response to a slowing economy. While traders now say the Fed’s first cut of the post-pandemic period is virtually guaranteed by September, former Federal Reserve Bank of New York President Bill Dudley wrote Wednesday that the Fed needs to strongly consider announcing a cut at its meeting next Wednesday.

‘Although it might already be too late to fend off a recession by cutting rates, dawdling now unnecessarily increases the risk,’ Dudley, now an executive at UBS financial group, wrote in a column for Bloomberg News.

Sosnick said Wednesday’s stock sell-off was not a total referendum on the broader state of the economy. Year to date, the S&P 500 has still had healthy gains of about 15%, while the Nasdaq is up about 18% and the Dow Jones Industrial Average is up 6%.

‘This is much more about a little bit of vertigo in names that have climbed a lot this year,’ Sosnick said.

But signs of a broader economic pullback continue to mount: The U.S. unemployment rate is rising, excess savings from the pandemic have been exhausted, and consumer borrowing stress is at fresh highs.

‘We expect relatively weak economic growth in the second half of 2024 and early 2025,’ Ian Shepherdson, chief economist at Pantheon Macroeconomics research group, wrote in a note to clients Wednesday.

This post appeared first on NBC NEWS
0 comment
0
FacebookTwitterPinterestEmail

previous post
Kamala Harris vetting list of possible running mates with 4 stand-outs: report
next post
6 House Dems vote with GOP to condemn Kamala Harris for ‘border czar’ role

related articles

YouTube to pay $24 million to settle Trump...

October 1, 2025

Charlie Javice sentenced to 7 years in prison...

October 1, 2025

Video game maker Electronic Arts to be acquired...

October 1, 2025

Nearly 200,000 BMWs recalled over potential fire risk

September 30, 2025

Trump says U.S. will impose new tariffs on...

September 29, 2025

Former Fed chairs warn that removing Lisa Cook...

September 27, 2025

Amazon to pay $2.5 billion to settle FTC...

September 27, 2025

The charm of watching movies in theaters is...

September 25, 2025

Ben & Jerry’s co-founder resigns, claiming parent company...

September 18, 2025

LimeWire acquires Fyre Festival, asking ‘What Could Possibly...

September 17, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • EURAUD and EURNZD: EURNZD is rising to a two-month high

    July 16, 2024
  • Kamala Harris back in national spotlight as James Comer floats subpoena in Biden ‘cover-up’ probe

    August 3, 2025
  • US flies joint patrol with the Philippines near shoal region guarded by China

    February 4, 2025
  • Camp David: Jimmy Carter’s finest moment

    December 30, 2024
  • Speaker Johnson warns illegal immigrant voting could ‘throw an election’ as House readies spending bill vote

    September 18, 2024

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 3

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 4

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (6,250)
  • Investing (634)
  • Stock (935)

Latest Posts

  • Walmart de Mexico hit with 10-year restrictions over supplier practices

    December 17, 2024
  • Senators enter marathon vote-a-rama as Trump’s ‘big, beautiful bill’ deadline barrels near

    June 30, 2025
  • Dogecoin and Litecoin: Doge above EMA 200 remains bullish

    September 11, 2024

Recent Posts

  • Pedophiles could see death penalty under new House GOP bill: ‘Taken off the streets permanently’

    January 14, 2025
  • State Department says Ukraine ready to accept 30-day ceasefire deal: ‘Ball is now in Russia’s court’

    March 17, 2025
  • Iran spouts ‘propaganda’ from UN podium, calls on Middle East to unite behind Tehran

    September 25, 2024

Editor’s Pick

  • JONATHAN TURLEY: Biden DOJ behind even the Times in pursuing alleged Hunter corruption

    April 6, 2025
  • Tariff case pits Cato Institute against Trump over ‘unlimited’ executive power under emergency law

    July 9, 2025
  • Harris-Trump showdown: Presidential race rocked by 2nd assassination attempt with 50 days until election

    September 16, 2024
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock