Wall Street Plummets, Tesla and Alphabet Shares Under Pressure
The US stock market closed sharply lower on Thursday due to worsening economic sentiment and resurfacing doubts about the magnitude of investment spending in the artificial intelligence sector.
The S&P 500 index fell 1.2%, the Nasdaq 100 fell 1.9%, while the Dow Jones Industrial Average lost 507 points. The communication services and non-primary consumer goods sectors recorded the largest declines, followed by the technology sector.
Alphabet shares fell 6.9% despite the company posting solid financial results. The pressure arose after the Google parent company raised its capital expenditure projections, fueling investor concerns about the high costs of AI development.
Tesla was one of the stocks with the deepest declines, plunging 14.5%. The company's profit fell despite strong electric vehicle deliveries.
Shares of other major technology companies also weakened. Nvidia fell 1.6%, Microsoft 2.2%, MetaTrader 3.4%, Amazon 4.6%, Broadcom 1.1%, and Oracle lost 4.6%.
Market pressure intensified after US government bond yields rose. Concerns about energy supplies intensified due to the tightening of the naval blockade in the Middle East, while US initial jobless claims fell to a 57-year low.
Among other stocks, Goldman Sachs fell 2.1%, Visa fell 0.5%, and Comcast fell 6.8% after reporting lower earnings. Conversely, RTX shares surged 7.3% after its performance exceeded market expectations.
Source: Newsmaker.id
