Stock market today: Nasdaq, S&P 500 slide as Alphabet and AMD earnings fall short
US stocks pulled back on Wednesday after earnings from Alphabet (
GOOG
,
GOOGL
) and AMD (
AMD
) fell short, with investors on alert for fresh moves in the brewing US-China trade war.
The tech-heavy Nasdaq Composite (
^IXIC
) slipped 0.6%, while the benchmark S&P 500 (
^GSPC
) slid roughly 0.2%. The Dow Jones Industrial Average (
^DJI
) was roughly flat after the major gauges
closed with gains
on Tuesday.
Alphabet’s stock was under pressure, down almost 8%, after
fourth quarter cloud revenue undershot estimates
. The miss rattled investors concerned that the Google parent’s hefty spending on AI won’t see the hoped-for payoff any time soon.
AI trade hopes were dealt a second blow by AMD’s earnings. While the chipmaker posted a
quarterly revenue beat,
a disappointing data-center sales forecast raised worries about a loss of AI momentum. AMD shares
tumbled over 9%
.
Big Tech names like Alphabet are also getting
caught up in the tariff
tit-for-tat between the US and China, which
Wall Street sees as a risk for tech
and chip names alike. Apple (
AAPL
) shares dropped roughly 2% after a Bloomberg report that Beijing is looking into
targeting its app store
in an antitrust probe.
President Donald Trump’s tariff plans have
markets already jumpy
, and his unexpected suggestion late Tuesday that the
US could take over the Gaza strip
and develop it as a “Riviera of the Middle East” left investors even more bemused about which direction policy will take next.
Disney (
DIS
)
was the earnings highlight Wednesday
, posting a beat on streaming strength but taking a hit in its theme park business from hurricanes.
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