Alphabet and Tesla reported second quarter earnings as US stocks slipped on Wednesday amid tariff news and rising oil prices.
US stocks retreated on Wednesday as investors evaluated second quarter results from Alphabet and Tesla. The Nasdaq Composite led the decline, dropping 0.5%, while the S&P 500 fell 0.1%. The Dow Jones Industrial Average finished just below flat. Alphabet shares fell in after-hours trading despite a strong quarter, as investors reacted to the company's capital expenditure growth. Tesla also reported results as the company moves into a new phase of automation. Other notable market moves included a surge in Supermicro shares following a record backlog report and a recovery for IBM. Trade and energy news also influenced the market. President Trump signaled a move toward permanent duties to replace expiring 10% global tariffs, including a potential 100% tariff on generic drugs. Additionally, a 25% tariff on Brazil took effect Wednesday. Oil prices rose as the US continued its 11th consecutive night of airstrikes against Iran. Defense Secretary Pete Hegseth informed Congress that the US has spent $37.5 billion on the escalating war to date.