Tech Selloff Deepens as Earnings Disappoint

The Dow Jones Industrial Average dropped 572.25 points to 51770.31, while the S&P 500 fell 1.82% to 7580.07. Despite these losses, major indices remain in positive territory for the year. The current market behavior highlights a growing disconnect between high analyst expectations and actual corporate performance, even as companies like Alphabet and Amazon report revenue growth well above historical averages.

"Reactions to bad earnings are awful, while reactions to good earnings are barely positive," said Lorenzo Di Mattia, chief investment officer at Sibilla Capital. This imbalance suggests poor liquidity and lingering market complacency. Meanwhile, Treasury yields dipped as investors sought refuge in bonds, balancing concerns over inflation as oil prices pushed above $100 per barrel in New York.