S&P 500 Suffers Biggest Drop Since 2022 as Tech Stocks Crater

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Earnings reports from Google’s parent company, Alphabet, and Tesla on Tuesday led to a slump in big tech stocks, and the biggest daily decline for Wall Street’s major benchmarks in over a year. The S&P 500 fell 2.3 percent on Wednesday, while the technology-heavy Nasdaq tumbled 3.6 percent, the biggest drop for both since 2022. Investors were expecting perfection from the tech giants’ earnings reports, said Daniel Ives, a tech analyst at Wedbush Securities. The sell-off indicates that investors are disappointed by the reports, but their response amounts to nothing more than “a blip in the radar,” as tech companies are poised to be bolstered by the artificial intelligence boom, Mr. Ives added. “Investors are negatively reacting to any whiff of softness that we see from these big tech players,” he said. “I think it’s an overreaction after a massive run in tech stocks.”