Tech stocks took a drubbing on Wednesday after lackluster Alphabet and Tesla earnings stirred up worries that Big Tech's power to fuel gains is fading. The benchmark S&P 500 tumbled more than 2% for the first time in more than a year, while the Dow Jones Industrial Average dropped about 1.2%. The tech-heavy Nasdaq Composite led the losses, falling about 3.6%, for its worst day since October 2022.
EV maker Tesla's stock price slid more than 12%, while Alphabet shares dropped more than 5%. In aggregate, the Magnificent 7 tech stocks lost more than $750 billion in market cap on Wednesday, the most on record for the group. Chip stocks also tumbled on Wednesday as Nvidia fell almost 7% while Broadcom and Arm each dropped about 8%.
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