S&P 500 Gains and Losses Today: Index Skids as Tesla, Alphabet Results Underwhelm

Major U.S. equities indexes tumbled arsenic underwhelming net reports from Tesla (TSLA) and Google genitor Alphabet (GOOGL) raised doubts astir nan sustainability of nan rally successful big-name tech stocks. Strength successful nan tech assemblage has been cardinal to nan ascent of nan marketplace gauges to their precocious recorded grounds highs.

The S&P 500 dropped 2.3% connected Wednesday, while nan tech-heavy Nasdaq plunged 3.6%, marking nan weakest capacity for some indexes truthful acold this year. The Dow closed nan convention 1.3% lower.

The sharpest losses successful nan S&P 500 belonged to shares of Lamb Weston Holdings (LW), which plummeted 28% aft it reported weaker-than-expected gross and net per stock (EPS) for its fiscal 4th quarter. The shaper of stiff murphy products cited declining edifice postulation successful nan U.S. and cardinal world markets amid higher paper prices arsenic a logic for nan lackluster performance. The institution besides guided for fiscal 2025 income and profits falling beneath statement estimates.

Tesla shares fell 12% aft nan electrical conveyance shaper reported a 45% year-over-year diminution successful profits for nan 2nd quarter, missing analysts' expectations. Although quarterly gross ticked higher from a twelvemonth agone and exceeded forecasts, little mean trading prices and transportation numbers dragged connected Tesla's profitability. The institution said it would attraction connected lowering accumulation costs, processing lower-cost vehicles, and progressing connected artificial intelligence projects including its humanoid robots and robotaxi.

Stocks that had been surging successful 2024 amid lofty AI expectations posted important losses during Wednesday's rout. Enthusiasm astir gathering powerfulness request from AI information centers helped propel shares of powerfulness generator Vistra (VST) to an all-time precocious successful May, but nan banal has been trending downward since then, and it slipped 9.4%. Shares of server and information retention supplier Super Micro Computer (SMCI) dropped 9.2%. Other heretofore AI darlings, including semiconductor giants, besides fared poorly.

Shares of Roper Technologies (ROP), which provides package and tech-enabled products to a assortment of markets, sank 7.4% aft nan institution missed second-quarter gross estimates and provided a lower-than-expected profit forecast for nan existent quarter. The soft outlook reflects restrained spending by Roper's clients, pinch businesses limiting spending and putting disconnected statement renewals amid economical uncertainties and elevated liking rates.

Enphase Energy (ENPH) shares notched Wednesday's champion capacity of immoderate S&P 500 stock, soaring 13% aft nan shaper of star and EV charging instrumentality released its quarterly report. Although second-quarter income and profits fell short of estimates, Enphase guided supra expectations for nan 3rd quarter. The institution touted advancement successful normalizing its inventory.

AT&T (T) besides posted somewhat lower-than-expected gross and net for nan 2nd quarter, but nan telecommunications elephantine exceeded forecasts for postpaid customer additions during nan period, and its shares jumped 5.2%. AT&T's free rate travel (FCF) besides came successful up of estimates, and guidance predicted that full-year FCF will surpass past year's figure.

Shares of NextEra Energy (NEE) precocious 4.6% aft nan renewable power supplier beat quarterly profit estimates and provided an upbeat outlook. The institution expressed assurance successful its opportunities to switch little businesslike forms of powerfulness procreation and to fulfill nan expanding request for power arising from various industries.