U.S. stock futures were dropping Wednesday after Google-parent Alphabet and electric vehicle maker Tesla reported earnings. The reports sent shares of two of the largest-value companies sharply lower.
Futures for the Dow Jones Industrial Average lost 156 points, or 0.4%. Contracts tied to the S&P 500 fell 0.7%, and those for the technology-heavy Nasdaq dived 1.2%. All three indexes finished lower Tuesday.
Big-name technology stocks have been leading the market up for most of the past two years, but have recently started to pull overall indexes down as investors turned their attention to other sectors. Company results could continue to determine the market’s direction–most of the rest of the so-called Magnificent 7 stocks report next week.
“Tech earnings started on an underwhelming note,” said Jim Reid, a strategist at Deutsche Bank. “The focus is now squarely on earnings season.”
Bond yields were little changed. The rate on the benchmark 10-year U.S. Treasury bond was at 4.236%. The yield on the 2-year note was at 4.443.