Wall Street suffers worst day since 2022

Wall Street has suffered its worst day since 2022; Tesla kicked things off with its post earnings slump and investors are now pivoting away from big tech and into small-caps instead

 
The pressure is now on for the Magnificent Seven; Nikos Tzabouras, Senior Financial Editorial Writer at Tradu, comments:

“It was brutal day for Wall Street sparked by Tesla’s post-earnings slump and Alphabet’s inability to show return on its AI spend. Big Tech at the forefront of AI have been responsible for the equities rally, but now comes under pressure as the AI euphoria unravels.

“Along with renewed tech-trade-jitters, the tech sector is unable to benefit from increasing optimism over a Fed pivot. Instead, investors appear to plough into small-caps. Although the AI boom may be stretched it may be too early to call its end. The current backdrop raises the stakes for the Mag7 earnings (Amazon, Apple, Meta, Microsoft) that will have to deliver.”