US stocks slipped on Wednesday as investors parsed earnings from Alphabet (GOOG) and Tesla (TSLA) after the market close, while fresh tariffs and rising oil prices remained in focus.
The Dow Jones Industrial Average (^DJI) fell just below the flat line in the final minutes of trading, while the S&P 500 (^GSPC) dropped 0.1%. The tech-heavy Nasdaq Composite (^IXIC) slipped 0.5%, leading the retreat from a winning day on Wall Street the day before.
A tech recovery faced its latest test when Alphabet and Tesla posted second quarter results, the first two of the “Magnificent Seven” megacaps to report. Google stock fell after-hours despite a strong quarter as the company’s capex growth announcement spooked investors. All eyes were on Tesla’s capex, too, as the Elon Musk-led company vaults into its next phase of automation.
Among the other notable earnings, Supermicro (SMCI) shares surged after the AI server maker reported a record backlog. IBM (IBM) also reported Q2 results after a pre-earnings warning caused a brutal stock drop last week.
In trade news, President Trump appears ready to replace expiring 10% global tariffs with more permanent duties, including a potential 100% tariff on imported generic drugs. A new 25% tariff targeting Brazil came into effect on Wednesday.
Oil prices also continued to rise as the US began its 11th straight night of airstrikes against Iran. On Tuesday, Defense Secretary Pete Hegseth disclosed to Congress that the US has spent $37.5 billion so far on the war, which has recently escalated.