On Wednesday, U.S. stocks saw a widespread decline, with Alphabet shares contributing to the downturn as the tech giant reported disappointing earnings. Concurrently, rising U.S. Treasury yields reignited concerns about the potential for elevated interest rates in the near future. The benchmark S&P 500 index logged its fifth daily decline in six sessions, closing below the closely watched 4,200 level. Meanwhile, the Nasdaq Composite experienced its most substantial single-session percentage drop since February 21, with interest rate-sensitive mega-cap stocks weighing heavily on the tech-heavy index. The Dow Jones Industrial Average ended the day with modest losses.
The Philadelphia SE Semiconductor index witnessed a sharp 4.1% plummet, marking its most significant one-day decline since December 22, 2022. Additionally, the Communication Services sector posted its most substantial percentage decline since February 3. Shares of Alphabet Inc. took a substantial hit following disappointing cloud services revenue figures, reigniting concerns of a potential economic slowdown. Meanwhile, benchmark Treasury yields resumed their upward trajectory, inching closer to the 5% mark, intensifying concerns of prolonged higher interest rates. The combination of mixed earnings results and persistent upward pressure on Treasury yields has created a challenging landscape for the market, with concerns about the longevity of high-interest rates taking center stage.