S&P 500 falls to the lowest since June on disappointing Alphabet results, higher rates: Live updates

The S&P 500 tumbled to its lowest since June on Wednesday after disappointing quarterly results from Google-parent Alphabet and a rebound in interest rates.

The benchmark index fell 1.5%, breaching the key 4,200 level that was being widely watched by chart analysts. Stock losses accelerated during the session after the benchmark broke that level. The Nasdaq Composite lost 2.4%, while the Dow Jones Industrial Average fell 104 points, or 0.3%. 

Alphabet shares tumbled more than 8% as its cloud business missed analysts’ estimates, overshadowing its strong revenue growth and earnings beat. The decline in Alphabet stock is its worst fall since October 2022. The S&P 500 communication services sector shed 5.8%, on track for its worst day since February 2022.

Shares of peer tech behemoths and Apple and Amazon meanwhile, slipped 1.3% and nearly 6%, respectively. Amazon is set to report third-quarter results after the closing bell on Thursday.

While corporate earnings maintain investor focus this week, investors also kept an eye on yields, as they hovered near multiyear highs. The benchmark 10-year Treasury yield climbed 11 basis points to 4.954%. It traded above 5% earlier in the week, which rattled investors and hit tech shares.

“Earnings are dominating the headlines, but I can’t take my eyes off the bond market,” said Ed Moya, senior market analyst at Oanda. “We haven’t seen this skyrocketing pace in yields since 1982 and that should spell trouble for stocks.”

Microsoft stood out as an outlier among the decline in tech stocks on Tuesday, with shares gaining 2.5% after first-quarter results beat Wall Street estimates.

Tech firms IBM and Meta will post quarterly results in the afternoon. About 29% of S&P 500 companies have posted third-quarter earnings thus far. Of those companies, 78% have exceeded expectations.