Wall Street stocks ended the day lower on Wednesday as losses in large technology companies offset gains in other areas of the market.
S&P 500 declines of 0.6 per cent were caused by declines in the magnificent seven, including Nvidia, Apple, Microsoft, and Amazon. Approximately 56 per cent of the benchmark index's stocks had a negative final result.
Many companies with outsized values that tend to rely more heavily on the index are included in the stocks of the tech sector.
The Dow Jones Industrial Average dropped 0.4 per cent after hitting two straight all-time highs. With a significant weighting in technology stocks, the Nasdaq composite ended the day 1.1 per cent lower.
The technology's heavy-weight index Nasdaq declined from the pressure of constituents of Magnificent Seven Pack. Nasdaq composite opened at 17,738.80 points on the US stock exchange. The index touched a day-high level of 17,759.94 points on the US bourse.
The Nasdaq composite has recorded a day-low level of 17,439.40 points and shuttered at a level of 17,556.03 points on the bourse.
The selling took place ahead of Nvidia's much-awaited earnings release. Nvidia makes the chips that enable AI applications. With a market valuation of more than USD 3 trillion, the company is among the most significant stocks on Wall Street.
Nvidia's earnings
Revenue for the second quarter was USD 30.04 billion. Nvidia made 68 cents per share in the second quarter, excluding items.
The second quarter ended July 28 saw a 154 per cent increase in sales to USD 26.3 billion in Nvidia's data center segment. It rose 16 per cent from the first quarter.
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Nvidia stock performance
Late on Wednesday, Nvidia released its second-quarter earnings. Despite exceeding Wall Street estimates for revenue and earnings, the stock dropped 3.7 per cent in after-hours trading. The regular session saw a 2.1 per cent decline in the shares. They still have a 153 per cent annual gain.
The chipmaker is among a number of businesses that have profited greatly from the excitement surrounding advancements in artificial intelligence and has been instrumental in the market's surge in value over the past year.
