Nasdaq Dips Ahead of Key Earnings from Tesla and Alphabet; Oil Prices Surge

The Nasdaq Composite led the market lower, falling 0.57% to 25,691, as rising oil prices put pressure on growth stocks. The S&P 500 slipped 0.13% to 7,499, while the Dow Jones Industrial Average finished nearly flat, down 0.01% to 52,219.

Gold prices saw a notable increase, gaining 1.49% to $4,137.10 by the U.S. market close. The 10-Year Treasury yield also rose 0.03% to 4.63%. Among sectors, Utilities experienced a climb, while Communication Services and Healthcare shares concluded the day lower.

Today's Biggest Moves

Super Micro Computer experienced a significant surge, jumping 26% following the announcement of a record backlog. AT&T also performed strongly, beating EPS expectations and sending its stock up 4%. Rocket Lab, despite an initial opening gain, ended the day largely flat after securing a $266 million U.S. government contract for 12 suborbital launches.

On the downside, Reddit saw an 8% decline after reports suggested potential limitations on Alphabet’s access to its content for AI training. This move is widely interpreted as a negotiation tactic to secure a more favorable licensing deal with Alphabet.

What This Means for Investors

Investor focus is now sharply on the after-hours earnings reports from Alphabet and Tesla. As of 5:45 p.m. ET, Alphabet's stock had fallen 4%, and Tesla's had dipped 5%.

Alphabet reported a 24% sales growth, with its cloud division revenue skyrocketing by 81%. However, the company's free cash flow turned negative due to substantial capital expenditures of $45 billion during the quarter, which outweighed operating cash flow.

Tesla's revenue increased by 26%, but its adjusted EPS fell short of Wall Street expectations, impacting its share price. The company is expected to remain volatile as it shifts production focus towards new ventures, including Cybercabs, Megapack 3, Tesla Semi, and Optimus robots, in addition to its current EV lineup.

Currently, Nasdaq futures are trading down 1%.