S&P 500 slides as big tech Microsoft and Alphabet weigh market

The Nasdaq and S&P 500 fell on Wednesday as traders weighed in on disappointing earnings from tech giants Microsoft and Alphabet.

The Nasdaq fell 2%. The S&P 500 lost 0.9%. The 30-stock Dow Jones industrial average traded 12 points lower.

Utilities and real estate trade were slightly negative as a sector later in the day. They are in the red in consumer preferences, communication services and technology.

Earlier in the day, the Dow rose more than 300 points as Visa lifted the index on strong earnings. The S&P 500 was positive.

Shares of tech giant Google-parent Alphabet fell 6.4% Missed expectations on the top and bottom lines. Alphabet reported a decline in YouTube ad revenue, prompting investors to downgrade the outlook for other tech companies that rely on ad spending.

Meanwhile, Microsoft later fell about 6% The tech giant’s cloud revenue is weaker than expected Despite beating revenue and earnings estimates in its latest quarterly results. The company also issued current quarter revenue guidance that fell short of expectations.

Fluctuations in major indexes reflect a “tug” between corporate America and the Federal Reserve as investors try to balance what companies report and what interest rate hikes mean, said Keith Buchanan, portfolio manager at GLOBALT Investments. The first of the big tech reports had a certain impact because it’s an industry in which many people are invested.

“Today’s intraday action is a microcosm of what we as investors have been feeling over the past several weeks,” said Keith Buchanan, portfolio manager at GLOBALT Investments. “Confidence is built on an entirely pessimistic outlook. The optimism of the Federal Reserve’s predecessor only occurs in a situation where, from a macroeconomic standpoint, things are deteriorating very quickly.”

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“The transition is here, it’s been here for a while, and I think it’s probably here to stay,” he added. “Not on a day-to-day, week-to-week basis, but on an intraday basis, because of where investors are right now.”

In other earnings news, Harley-Davidson shares rose 6.7% after the motorcycle maker reported beating expectations before the hour. Boeing lost 9.4% after the jet maker Quarterly loss and revenue missed expectations.

Shares rose earlier in the day as traders tried to shake off disappointing quarterly results from Microsoft and Alphabet.

If the indexes turn negative, the S&P 500 and Nasdaq will break three-day winning streaks.

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