Wall Street futures fell on Wednesday, with those tracking the tech-heavy Nasdaq recording the steepest losses after weak quarterly earnings from Tesla and Alphabet, as investors questioned the dominance of Big Tech and euphoria around AI.

Market Snapshot

At 7:50 a.m. ET, Dow e-minis were down 158 points, or 0.39%, S&P 500 e-minis were down 39.75 points, or 0.71%, and Nasdaq 100 e-minis were down 218 points, or 1.09%.

Pre-Market Movers

Tesla declined 8.36% in premarket trading after the electric-vehicle maker reported second-quarter profit that missed analysts ’ expectations but better-than-anticipated revenue. Adjusted earnings of 52 cents a share came up short of expectations of 61 cents and were down from 91 cents a share a year earlier. Tesla ’ s profit dropped for a second-straight quarter. The company ’ s operating profit margin in the period was 6.3%, below estimates of 8%.

Shares of other EV makers also traded lower. Rivian Automotive fell 3.1% and Lucid Group was down 2.7%.

Alphabet reported earnings of $1.89 a share in the second quarter, topping analysts ’ estimates of $1.85 a share, as revenue of $84.74 billion surpassed estimates of $84.3 billion. For the first time, Alphabet ’ s cloud revenue exceeded $10 billion in the second quarter, up from $8 billion in the year-earlier period. Ad sales increased 11.1% but slowed from the first quarter ’ s growth of 13%. The company continued its heavy capital investments in the cloud and AI systems. Capital spending in the second quarter was $13.2 billion, up from $12 billion in the first quarter and less than $7 billion in June 2023. Shares of Alphabet, the parent company of Google and YouTube, were down 3.76%.

AT&T reported its second-straight quarter of stronger-than-expected net phone subscribers, while overall revenue came up slightly short of Wall Street expectations. The telecommunications company posted 419,000 postpaid phone net adds, above the 349,000 added in the first quarter and well above the 284,800 additions that analysts expected. Shares were rising 3.4%.

Visa reported fiscal third-quarter adjusted earnings that matched expectations while revenue of $8.9 billion slightly missed. Payments volume rose by 7% in the period, while processed transactions increased 10%, down from 8% growth in overall payments volume in the second quarter and 11% growth in processed transactions. Shares of the credit-card company fell 4%.

Texas Instruments, the semiconductor company, reported second-quarter earnings of $1.22 a share, including a 5-cent benefit from unexpected items. Excluding the benefit, earnings in the period were roughly in line with Wall Street estimates. Revenue fell 16% to $3.82 billion but matched expectations. Texas Instruments said it expects third-quarter revenue of $3.94 billion to $4.26 billion, while analysts had been looking for $4.12 billion. The stock rose 2.8%.

Seagate Technology was up 4.5% in premarket trading after the maker of hard drives reported fiscal-fourth quarter earnings and revenue that beat Wall Street expectations. The company said it expects 2025 fiscal first-quarter revenue of $2.1 billion, plus or minus $150 million.

Enphase Energy‘ s second-quarter adjusted earnings missed estimates and revenue of $304 million also came up shy of forecasts. Shares of Enphase, which makes microinverter systems for solar panels, were rising 5.5% as the company said it expects third-quarter revenue of between $370 million and $410 million, compared with estimates of $404 million.

Market News

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CrowdStrike Holdings Inc., the cybersecurity company at the center of massive global IT outages, said that a bug in a safety mechanism allowed flawed data to go out to customers in a botched update, causing last week ’ s meltdown.

The US company is trying to piece together the series of events that led to one of the most spectacular rolling IT failures the world has ever seen. The incident crashed Microsoft Windows computer systems around the world on Friday, taking down airline, banking and stock exchange operations from Australia and Japan to the UK.

Pfizer's Treatment for Bleeding Disorder Meets Goal in Key Trial

Pfizer Inc.’ s gene therapy for a severe bleeding disorder met its goal in a pivotal late-stage trial, paving the way for the company to enter what ’ s proven to be a challenging market for drug companies.

The therapy performed better than a common treatment used by hemophilia A patients, known as Factor VIII replacement, in a measure of bleeding rates through at least 15 months of follow-up, Pfizer said Wednesday in a statement. The company said it will discuss the data with regulators in the coming months.

Singapore and Malaysia Are Intensifying Regulations on Social Media

Malaysia and Singapore are intensifying their regulation of social media and online marketplaces to tackle the rise in online scams and protect minors.

Malaysia will require platforms like Meta Platforms Inc. owned Facebook, Elon Musk ‘ s X, and ByteDance-owned TikTok to obtain licenses by year-end.

Neighboring Singapore has already mandated social media and online marketplaces to detect and act against scams. The Ministry of Home Affairs issued new codes of practice last month, requiring platforms like Mark Zuckerberg-owned Facebook and Carousell to verify sellers ’ identities.