The Nasdaq and S&P 500 closed near session lows Wednesday, registering their worst losses in at least 1-1/2 years. Microsoft, Apple, Tesla, Alphabet and other big stocks plunged in the stock market today.
The Nasdaq composite — saddled by the sell-off in Tesla and Google stocks — plummeted 3.6%. The index is now below its 50-day moving average. It was its worst loss since Dec. 15, 2022.
The Dow Jones Industrial Average lost more than 500 points, or 1.3%. The 30-stock index fell below the 40,000 psychological level. The S&P 500 slid 2.3% and closed just below its 50-day line. The S&P suffered its worst beating since Oct. 7, 2022.
The small-cap Russell 2000 fell 2.1%.
In bonds, the 10-year Treasury yield added five basis points to 4.28%. And U.S. crude oil prices climbed near $77.55 a barrel.
Volume was higher on the Nasdaq and the New York Stock Exchange, according to early data. Losers beat winners on the Nasdaq exchange by more than 3-to-1 and by 9-to-2 on the NYSE.
Updated 3:30 p.m. ET
Solar Stock Shines In Dark Stock Market
Enphase Energy bolted 13% higher in heavy trading, despite missing both second-quarter profit and sales forecasts. But the solar and battery-system supplier got a handle on its inventory, and the company said its U.S. business was turning around. It also sees potential lower interest rates as a positive, as customers finance large solar projects. Shares retook their 50-day line and may be forming a base.
IBD 50 contract manufacturer Celestica plummeted 7.5% in heavy volume and knifed through its 50-day line. The move was a change in character for the stock, which has climbed 84% this year so far. The stock was the biggest loser in the IBD 50 on the stock market today. The company will report its second-quarter results after the market close.
Updated 2:08 p.m. ET
Microsoft, Apple Join Sell-Off; Aerospace Stock Soars
Magnificent Seven stock Microsoft sank 3.3% in sympathy with fellow tech giants Tesla and Alphabet, and undercut its closely watched 50-day line. Shares gave back more than an 8% gain from a flat-base breakout. The stock fell below the 430.82 buy point.
Apple toppled 3% and sliced below its 21-day line. Shares fell four out of the last six sessions as it comes off record highs.
Lockheed Martin jumped 3.5% on top of Monday's 5.6% pop. Lockheed reached a record high on the stock market today. The aerospace and defense company rose after Monday's better-than-expected second-quarter earnings report.
Rival defense contractor General Dynamics skidded nearly 4% after it missed second-quarter profit projections and beat sales views.
12:22 p.m. ET
Stock Market Today: Potato Stock Gets Fried
Lamb Weston Holdings crashed 26% in huge volume following the company's miss on fiscal fourth-quarter profit and sales forecasts. Additionally, Lamb Weston issued full-year 2025 profit and revenue forecasts that were below analyst estimates. The potato products stock was the biggest loser on the S&P 500 on the stock market today.
"We are disappointed by our fourth-quarter performance," Chief Executive Tom Werner said in the company's earnings release. He added: "We expect fiscal 2025 to be another challenging year."
Weatherford International cratered more than 8% after the firm reported lower-than-expected earnings and sales for the second quarter. The oil-and-gas services company also authorized its first ever stock buyback program, of $500 million. The stock fell from a buy zone of a cup-with-handle base and tested support at its 50-day line.
AT&T powered up 4.9% in heavy volume following the company's mixed second-quarter earnings report. But it added more phone subscribers than projected and its free cash flow rose nearly 10%, topping views. Shares topped the 5% buy zone of a double-bottom base with a 17.88 buy point.
Fiserv broke out of a flat base with a 159.99 buy point but trimmed gains and is trading around the buy point.
10:48 a.m. ET
Magnificent Seven Stocks: Tesla, Google Sink After Earnings
Tesla stock plummeted more than 12% after the company reported lower-than-expected second-quarter earnings late Tuesday. Sales, however, came in above estimates. Profits fell 43% year over year while sales grew a modest 2%, despite it being a record level. Tesla's gross margins fell 23 basis points to 18%.
Tesla stock undercut its 21-day exponential moving average on the stock market today, according to MarketSurge chart analysis. It has a 271 handle buy point on a long, undefined base. Shares are on track for their largest decrease since Jan. 25, 2024, when they plummeted 12.13%, according to Dow Jones Market Data. The electric vehicle stock has dropped 12% so far this year.
Google stock plunged nearly 4% despite beating second-quarter profit and revenue projections late Tuesday. One speed bump, however, was that its YouTube ad revenue of $8.66 billion missed estimates. Investors also focused on management's comments regarding higher expenses in the September quarter, pressuring margin growth.
Further, the company is investing heavily in capital expenditures, with $13.19 billion spent in the second quarter. Analysts expected that figure to come in at $12.3 billion.
The IBD 50 stock sank below its 50-day moving average on Wednesday. Google stock is extended from a cuplike base with a 153.78 buy point. Shares are on pace for largest decrease since Feb. 26, 2024, when they fell 4.44%.
Futures Rise On Earnings After Market Breaks Key Levels
Stock Market Today: Nvidia, Meta Fall With Big Tech
Meanwhile, IBD Leaderboard stock Nvidia slid more than 3% and tested support at its 50-day line.
Meta Platforms retreated nearly 4% after four days of gains. Shares of the Facebook parent remain below the 50-day line on the stock market today.
Elsewhere, Tenet Healthcare soared more than 5% in heavy volume and broke out of a flat base with a 142.35 buy point. But a more appropriate entry would be 147 based on the first five minute price bar, with a buy range up to 154.35.
The hospital operator topped second-quarter adjusted earnings and sales views and raised its full-year 2024 revenue outlook. Its relative strength line reached a 52-week high on the stock market today, as shown by the blue dot on its chart.
Dow Jones Stock Visa Sinks
Dow Jones component Visa plunged 4% after the company beat fiscal third-quarter earnings but missed sales forecasts. Shares fell further below their 200-day moving average and below the bottom of a flat base.
Seagate Technology popped more than 6% following the company's higher-than-expected profits and revenue for its fiscal fourth quarter. The electronic storage product and service company also raised fiscal first-quarter sales projections, which topped estimates.
FTAI Aviation whipsawed and jumped nearly 4% in recent trades, after the company beat second-quarter revenue estimates late Tuesday.
The aerospace products stock reached a record high on the stock market today. The stock has had a tremendous run since its last base breakout in October and has climbed 129% this year so far.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
