US stocks tumbled Thursday, with the Nasdaq Composite sliding 2% in its worst session since November 2022. The S&P 500 fell 1.1% and the Dow Jones Industrial Average dropped more than 1%, as disappointing earnings from Tesla and Alphabet sparked a broad selloff across technology and banking sectors.
The Nasdaq Composite fell 2% on Thursday, its worst session since November 2022, as disappointing earnings from Tesla and Alphabet triggered a broad tech selloff.
The selloff coincided with three catalysts: disappointing quarterly results from Tesla and Alphabet, a jump in Brent crude above $99 a barrel on escalating Iran tensions, and broad selling in semiconductor names, traders said. Tesla dropped more than 10% while Alphabet fell 6.6%, with Amazon and Meta Platforms each sliding more than 3%.
The S&P 500 declined 1.1% and the Dow Jones Industrial Average lost more than 1%, with the banking index falling 1.6%. Semiconductor stocks including Microchip Technology, Qualcomm and Texas Instruments were among the Nasdaq's biggest decliners. United Rentals was the top gainer on the S&P 500 after raising its full-year guidance and announcing plans to increase fleet spending. On the economic front, initial jobless claims fell to 187,000, the lowest since 1969, down from 209,000 and well below the 210,000 consensus estimate.
The selloff marks a sharp reversal for megacap technology stocks that had powered much of this year's gains. Brent crude's rise above $99 a barrel adds another layer of risk, with RBC Capital Markets warning that prices could surpass the 2022 peak of $128 a barrel if the Iran conflict escalates into a full regional war. Investors now face a dual threat of stretched tech valuations and rising energy costs that could pressure corporate margins heading into the second half of the year.
This article is for informational purposes only and does not constitute investment advice.
