Key Takeaways
- The S&P 500 dropped 1.4% on Wednesday, Oct. 25, 2023, with Alphabet’s earnings report and rising borrowing costs pressuring tech stocks.
- Alphabet’s cloud revenue missed expectations, and shares of the Google and YouTube owner plummeted more than 9%.
- Microsoft’s cloud and artificial intelligence (AI) performance shone, which helped lift shares of the software giant.
U.S. equities sank, pulled down by the tech sector following the earnings report from Alphabet (GOOGL) and a spike in interest rates.
The S&P 500 dropped 1.4% in Wednesday’s session, falling to its lowest level since June. The Nasdaq tumbled 2.4%, hitting an eight-month low. The yield on the 10-year Treasury note jumped to 4.95%.
Alphabet shares plunged 9.5% after the owner of Google and YouTube posted cloud computing revenue that came in below analysts’ forecasts. Amazon (AMZN) shares dropped 5.6%, with concerns about what its cloud revenue will be when it announces quarterly results on Thursday.
Thermo Fisher Scientific (TMO) shares lost 5.5% as the lab equipment and analytical instruments manufacturer reported sales that were below estimates and cut its outlook for a second straight quarter, blaming “weaker market conditions.”
CoStar Group (CSGP) shares slipped 4.4% after the real estate information provider slashed its full-year revenue outlook as high mortgage rates and tight housing supply cut into homebuying demand.
Waste Management (WM) shares were up 6.1% as the waste collection and disposal company exceeded profit estimates, citing pricing discipline and optimization of its cost structure.
General Dynamics (GD) shares added 4% after the defense contractor posted better-than-expected results as the Pentagon purchased more of its weapons to replace those sent to Ukraine.
Microsoft (MSFT) shares rose 3.1% amid demand for the software maker’s cloud computing and AI products.
Robert Half (RHI) shares gained 2% as the recruitment services firm’s profit came in above expectations, boosted by its pricing strategy and as businesses looked to hire more higher-skilled employees.
