Stocks fell Wednesday as investors were underwhelmed by quarterly reports from megacap tech companies Alphabet and Tesla.

Shares of Google parent company Alphabet fell more than 4%. Although Alphabet reported a top and bottom line beat, YouTube advertising revenue fell below the consensus estimate. Meanwhile, Tesla shares declined more than 8% on weaker-than-expected results and a 7% year-over-year drop in auto revenue.

Those reports mark investors ’ first look at how megacap companies fared during the second quarter. Reports from these names are of special interest to Wall Street as this small cohort is responsible for the bulk of this year ’ s gains.

More than 20% of the S&P 500 companies have reported their second-quarter earnings, with 80% of them topping expectations, according to FactSet data.

Wall Street is coming off a losing session, with the major averages pulling back slightly.

Investors have largely priced in the chances of the Federal Reserve cutting interest rates at its September meeting. Combined with rising confidence in a soft landing, the market has continued its rally, with rate-sensitive sectors such as small caps and industrials rising in recent weeks.

"You ’ re left with an economy that continues to grow, corporations that continue to manage the environment very, very well and a market that ’ s reflecting that in its elevated valuations," said Solus Alternative Asset Management chief strategist and economist Dan Greenhaus.