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Tech earnings underwhelm
Renewed losses in the technology sector after tech giant earnings miss
Rotations into more economically sensitive sectors continue
Kamala Harris leads Trump by 2 points after Biden's exit, per Reuters/Ipsos poll
Tesla shares dropped 8% due to missed Q2 expectations, declining sales, and rising expenses.
US politics
Vice President Kamala Harris gained a slight two-percentage-point lead over Republican Donald Trump following President Joe Biden's decision to end his re-election campaign and endorse her, according to a Reuters/Ipsos poll. Contrasting with the two-point deficit Biden faced against Trump in last week's poll before his withdrawal from the race on Sunday.
Earnings
Alphabet’s earnings surpassed earnings expectations, but slower growth in ad revenue and rising AI expenditures gave up weak cues for even AI companies amid high interest rates.
Alphabet shares dropped 2%, while Tesla dropped 8% after missing second quarter expectations.
Tesla was observed struggling with declining sales and increasing expenses as it allocated more resources to artificial intelligence and self-driving technology.
Stocks
Chinese stocks hit a 2-week low on economic jitters, China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes declined by 0.8% and 0.6%, respectively, reaching a two-week low.
Australia’s ASX 200 fell slightly as purchasing managers index data indicated a likely slowdown in manufacturing and services activity in July.
Japan’s TOPIX index decreased by 0.4%, with losses mitigated by some signs of improvement in the Japanese economy. While PMI data showed a contraction in manufacturing activity, the services sector sharply rebounded into expansion in July, boosting overall business activity.
