On Tuesday evening, U.S. stock index futures fell, and tech stocks weakened again after disappointing second-quarter earnings reports from Alphabet and Tesla.
Major tech stocks declined in after-hours trading, setting a pessimistic tone for the quarterly earnings reports to be released in the coming days. The decline in tech stocks also signals another round of sell-offs for the sector, which has been hit hard in the past week due to profit-taking and a shift in funds to more economically sensitive sectors.
As of 7:36 PM Eastern Time (11:36 PM GMT), S&P 500 futures fell 0.4% to 5576.75 points, Nasdaq 100 futures dropped 0.6% to 19807.0 points, and Dow Jones futures decreased 0.2% to 40529.0 points.
Tesla's profits disappoint, bleak outlook Tesla performed the worst in after-hours trading, with its stock price dropping nearly 8% due to second-quarter earnings missing expectations and a decline in vehicle sales.
Facing increasing competition in key markets like China, Tesla responded by significantly cutting prices, leading to its lowest profit margins in five years.
Despite significant increases in spending on artificial intelligence and self-driving taxis, quarterly costs rose, and the launch of self-driving taxis has been postponed from August to October.
