Investing.com– U.S. stock index futures fell in evening deals on Tuesday, with technology stocks seeing renewed weakness after underwhelming second-quarter earnings from heavyweights Alphabet and Tesla.
Major tech stocks declined in aftermarket trade, with the earnings setting a dour tone for more quarterly prints due in the coming days. Losses in technology stocks also heralded a renewed rout in the sector, which was battered by profit-taking and a rotation into more economically sensitive sectors over the past week.
fell 0.4% to 5,576.75 points, while fell 0.6% to 19,807.0 points by 19:36 ET (23:36 GMT). fell 0.2% to 40,529.0 points.
Tesla tumbles as profit disappoints, outlook sours
Tesla Inc (NASDAQ:) was the worst performer among its heavyweight tech peers in aftermarket trade, tumbling nearly 8% after its second-quarter earnings missed estimates amid falling vehicle sales.
Tesla’s profit margins fell to a five-year low as the electric vehicle maker aggressively cut prices to grapple with increased competition in key markets such as China.
Costs during the quarter rose sharply on increased expenditure on artificial intelligence and robotaxis, although the latter’s reveal was delayed to October from August.
Alphabet falls despite earnings beat
Google parent Alphabet Inc (NASDAQ:) fell 2.2% after the bell, even as its second-quarter earnings beat expectations on increased advertising sales and strong demand for its cloud services.
But advertising sales- which are the company’s top revenue source- grew at a slower pace in the quarter, while revenue from YouTube missed some market expectations.
Alphabet’s expenses also rose substantially year-on-year amid continued expenditure on AI development- a trend that is expected to eat into profit margins in the coming quarters.
Losses in Alphabet and Tesla spooked the broader tech sector, which was already nursing steep losses over the past week.
Google peers Apple Inc (NASDAQ:) and Microsoft Corporation (NASDAQ:) fell about 0.4% each after the bell, while chipmaker NVIDIA Corporation (NASDAQ:) fell 1.5%.
Tech rout, political uncertainty keeps Wall St on edge
Wall Street indexes ended a touch lower on Tuesday amid caution over major tech earnings, while investors also grappled with uncertainty over the presidential race.
The fell 0.2% to 5,555.74 points, while the fell slightly to 17,998.97 points. The ended down 0.1% at 40,358.09 points.
Focus was on a string of upcoming earnings prints, from International Business Machines (NYSE:), Qualcomm Incorporated (NASDAQ:), ServiceNow Inc (NYSE:), AT&T Inc (NYSE:), Ford Motor Company (NYSE:), and General Dynamics Corporation (NYSE:), due on Wednesday.
Markets were also looking at any new developments in the presidential race, after President Joe Biden dropped out over the weekend and endorsed Vice President Kamala Harris as the Democratic frontrunner.
Harris was seen taking a slight lead over Republican nominee Donald Trump, according to a Reuters/Ipsos poll.
