Following disappointing financial reports from numerous local banks and electric car manufacturer Tesla, Wall Street equities declined on Thursday.
The broad-based S&P 500 fell 0.6 percent to 4,129.79, while the Dow Jones Industrial Average ended the day 0.3 percent down at 33,786.62.
The heavily weighted Nasdaq Composite Index for technology fell 0.8 percent to 12,059.56.
“Earnings alone are dragging stocks down as Tesla deals with its margin problem,” said Edward Moya of OANDA in a note.
Shares of Tesla dropped 9.8% after it revealed lower quarterly profitability and hinted at potential future profit challenges from more car price reductions.
Data, according to Moya, also indicate that the US economy is deteriorating.
Shares of regional banks like KeyCorp, Zions Bancorporation, and Comerica fell as a result of earnings reports, which indicated the effect of an industry panic after Silicon Valley Bank’s abrupt failure.
The market is a little bit on edge, according to Patrick O’Hare of Briefing.com, since the season with the highest earnings is about to begin.
