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on Tuesday, the main indexes of Wall Street closed marginally down after giving up small intraday gains in the last minutes of trade. Investors shifted their attention to the most recent earnings reports from Alphabet and Tesla, among others.
After the market closed, the two companies began releasing results from the so-called Magnificent Seven stocks; both posted positive revenue figures for the second quarter. Tesla surprised analysts with a rise in revenue due to the delivery of more vehicles than expected, which was aided by price cuts and incentives. Alphabet, on the other hand, had better-than-expected revenue thanks to strong demand for its cloud computing services and an increase in digital advertising revenues.
Even though the data wasn’t released just yet, the electric vehicle maker’s stock fell 2% while the parent company’s stock rose 0.1%.
The fate of the record surge in 2024 and the overvaluation of U.S. equities will be decided by the earnings of tech titans. A further concern for investors is the sustainability of the current trend of shifting focus from megacaps to underperforming industries.
A small-cap index, the Russell 2000, rose one percent throughout the trading session.
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