US stocks down after disappointing corporate earnings results

The financial companies’ results for the second quarter reflected a negative atmosphere on Wall Street, as US indices started the trading day in the red zone. Stock trading fell on Wednesday, as investors were frustrated by the quarterly reports issued by huge technology companies Alphabet and Tesla.

According to CNBC, futures contracts linked to the high-tech Nasdaq 100 index fell by 1.5%, while futures contracts for the Standard & Poor’s 500 index fell by about 1%. Dow Jones Industrial Average futures lost 190 points, or 0.5%.

Wall Street is coming off a losing session, with the major averages falling slightly. Investors have largely taken into account the chances that the US Federal Reserve will cut interest rates at its meeting in September.

Along with growing confidence in a soft landing, the market has continued to rise, with interest rate-sensitive sectors such as small caps and industrials rising in recent weeks.

“We’re left with an economy that continues to grow, companies that continue to manage the environment very well, and a market that reflects that in its high valuations,” said Dan Greenhouse, chief strategist and economist at Solus Alternative Asset Management.

Credit card company Visa shares fell more than 2% after the company reported a revenue loss in the third fiscal quarter.

Visa reported revenue of $8.9 billion, slightly below the $8.92 billion forecast of analysts polled by LSEG.

Meanwhile, payment volume rose 7% in the quarter.

Stocks opened lower after disappointing technology earnings and major stock averages opened lower on Wednesday morning.

The S&P 500 lost about 0.9% and the Nasdaq Composite fell 1.5%. While the Dow Jones Industrial Average lost 152 points, or 0.4%.