US stocks took a hit on the last trading day of the month. This drop came in light of earnings reports from Amazon and Alphabet, which raised fresh questions about the huge investments these tech giants are making in their AI initiatives.
The Nasdaq Composite experienced a significant decline, falling 2.6% as a technology-driven sell-off continued without any clear end in sight. The Dow Jones Industrial Average dropped 0.7%, while the S&P 500 saw a decrease of 1.5%.
This downturn marks a second consecutive day of losses for stocks, following rare earnings misses from both Amazon, whose shares dropped 4%, and Alphabet, which saw its stock plummet the most it has in over 20 years.
Intel also faced a harsh reaction to its latest earnings report, with its stock plunging 29% in premarket trading after the company’s outlook for Q4 fell short of expectations.
On a different note, oil companies ExxonMobil and Chevron announced that their earnings received a boost from wider refining margins amid ongoing conflicts in the Middle East. Pharmaceutical giant AstraZeneca also managed to beat expectations with its earnings report prior to market opening.
Despite the focus on earnings, oil prices have rebounded, adding more strain on the markets. Brent crude futures climbed to $113 per barrel, while WTI crude reached $104 per barrel.
