Tech stocks drag on Nasdaq as investors monitor corporate profits

NEW YORK: The Nasdaq was pressured by falling megacap stocks on Tuesday, a day before major tech results are due, while investors assessed a spate of second-quarter corporate earnings and watched for signs of progress in US trade discussions.

At 11:25 a.m. ET, the Dow Jones Industrial Average rose 53.78 points, or 0.11%, to 44,372.37, the S&P 500 lost 6.56 points, or 0.10%, to 6,298.48 and the Nasdaq Composite lost 100.59 points, or 0.48%, to 20,874.05.

Heavyweight tech names were the biggest losers. Amazon fell 1%, Meta Platforms shed 1.1%, Nvidia was down 1.6% and Broadcom lost 2.3%.

The S&P’s technology sector led sectoral losses and dropped 0.9%, cooling from a record high in the previous session.

“Traders are just trying to position a little... because it’s (technology) had such a big run. Some might be hedging a little bit before the earnings,” said Max Wasserman, senior portfolio manager at Miramar Capital.

Some underwhelming corporate results also dimmed sentiment. General Motors saw its second-quarter profit skid 32% to $3 billion, with the automaker blaming hefty tariff costs for carving out $1.1 billion from its results. Its shares lost 6.9%, while peer Ford dipped 1%.

Tariff actions also weighed on RTX and the defense company slashed its 2025 profit outlook, sending its shares down 2.2%.

Lockheed Martin did not fare much better — its second-quarter profit nosedived nearly 80% after booking a hefty $1.6 billion in pre-tax losses.

The ever-evolving nature of tariff headlines also had investors on edge as the August 1 deadline set by US President Donald Trump for most countries approaches.

Treasury Secretary Scott Bessent announced plans to meet his Chinese counterpart next week, potentially discussing an extension to the August 12 deadline set for tariffs on imports from China.

Meanwhile, trade negotiations stalled, with optimism for a breakthrough deal with India waning, according to Indian government officials, and as the EU weighed new countermeasures against the United States.

Focus will shift to results for Google-parent Alphabet and EV-maker Tesla as they kick off quarterly earnings for the “Magnificent Seven” stocks on Wednesday.

Alphabet’s shares dipped 0.4%, while Tesla edged up 0.5%. Elevated earnings expectations for these stocks are already priced to justify their stretched valuations, leaving little room for disappointment.

“Unless you get real bad news or something that indicates a slowdown in the rate of growth, you could see a selloff,” Wasserman said.

The healthcare sector jumped 1.2% to lead sectoral gains after declining for the last three sessions.