Major U.S. Stock Indexes Experience Significant Losses on July 24, 2024

U.S. stock indexes experienced significant declines on Wednesday, marking their worst losses since 2022, as disappointing profit reports from Tesla and Alphabet dampened investor enthusiasm surrounding artificial intelligence technology. The S&P 500 fell by 2.3%, while the Dow Jones Industrial Average and Nasdaq composite dropped by 1.2% and 3.6%, respectively. Although the earnings reports were not catastrophic, they raised concerns about the potential underperformance of other major companies in the upcoming earnings season. The sell-off was particularly pronounced among Big Tech stocks, which have been the driving force behind the market's gains this year. Critics argue that these stocks have become overvalued, leading to a reassessment of their worth. Smaller stocks also faced a sharp decline, losing momentum after a period of strong performance. The S&P 500 closed at 5,427.13, down 128.61 points, while the Dow ended at 39,853.87, down 504.22 points. The Nasdaq composite finished at 17,342.41, down 654.94 points. In terms of weekly performance, the S&P 500 is down 1.4%, the Dow is down 1.1%, and the Nasdaq has decreased by 2.2%. Conversely, the Russell 2000 index of smaller companies has seen a slight increase of 0.5%. Year-to-date, the S&P 500 is up 13.8%, the Dow has risen by 5.7%, and the Nasdaq has gained 15.5%, while the Russell 2000 is up 8.3%. Overall, the market's recent downturn reflects growing investor caution amid concerns over valuation and future earnings potential in the tech sector.