Wall Street falls due to caution ahead; Tesla disappoints

Investors were anticipating the quarterly reports from Alphabet and Tesla after Spotify, Coca-Cola, and General Motors reported better-than-expected results, while United Parcel Services (UPS) disappointed.

The three major Wall Street indices fell, reversing the positive performance seen earlier in the day, as caution prevailed ahead of Tesla and Alphabet’s quarterly reports.

The Dow Jones index, comprising 30 major companies, dropped 0.14% to 40,358.09 points. The S&P 500, with 500 stocks, fell 0.16% to 5,555.74 points. The Nasdaq Composite, featuring large tech firms, decreased by 0.06% to 17,997.35.

Investors were also closely watching the U.S. election developments following President Joe Biden’s withdrawal from the Democratic candidacy. Vice President Kamala Harris is a potential replacement, but it’s not confirmed yet.

Economic concerns included expectations for U.S. inflation and GDP figures, as markets seek clues on future Federal Reserve (Fed) interest rate decisions, with a rate cut anticipated in September.

Sector movements were mild, with energy companies (-1.55%) and utilities (-0.65%) among the losers. In the Dow Jones, Boeing (+4.24%) and Amazon (+2.11%) saw gains, while Walt Disney (-3.39%) declined.

After the market closed, Tesla’s shares fell due to disappointing car sales affecting earnings. Alphabet exceeded expectations with increased revenue, but its shares also dropped.