Wall Street Weakens, Big Tech in Focus
US stocks closed lower on Wednesday (July 22nd), ahead of the start of the earnings season for major technology companies. The S&P 500 fell 0.1%, the Nasdaq 100 fell 0.5%, while the Dow Jones Industrial Average edged lower.
The main pressure came from software and large technology stocks ahead of Alphabet's earnings release. Alphabet shares fell 1.5%, Microsoft fell 1.9%, and MetaTrader slid 2.6% as investors reassessed whether the massive spending on AI infrastructure would continue.
Tesla shares also weakened ahead of the earnings release. Meanwhile, some chip stocks managed to rebound from earlier pressure, with Nvidia rising 2.3%, Broadcom gaining 2.7%, and AMD adding 1.4%.
Market sentiment was also weighed down by escalating tensions between the US and Iran following an Iranian drone attack targeting a CIA facility in the Gulf. This situation has pushed oil prices higher, fueling inflation concerns, and pushing bond yields higher.
The financial sector saw mixed results, with Visa down 0.7%, while JPMorgan rose 0.9%. In the telecommunications sector, AT&T jumped 3.5% after posting results that beat market expectations.
As for the market impact, Wall Street is still likely to move cautiously as investors await Big Tech earnings reports, which will determine the direction of the Nasdaq and S&P 500. If reports from Alphabet, Tesla, and other tech companies disappoint, pressure could continue. However, if AI spending remains strong and chip stocks are able to hold up, the market correction could be limited.
Source: Newsmaker.id
