As a consequence of a slew of lacklustre earnings reports, including disappointing results from electric vehicle manufacturer Tesla and some regional banks, Wall Street equities declined early on Thursday.
Tesla fell approximately eight percent after reporting a decline in quarterly earnings and indicating that additional price cuts on its vehicles could exert further profit pressures.
Several regional banks, including KeyCorp, Zions Bancorporation, and Comerica, fell roughly five percent each after earnings reports revealed the impact of an industry crisis following Silicon Valley Bank’s collapse in March.
Approximately fifteen minutes into trading, the Dow Jones Industrial Average was 0.4% lower at 33,748.86.
The broad-based S&P 500 fell 0.6% to 4,131.09, while the technology-focused Nasdaq Composite Index fell 0.7% to 12,078.44.
American Express and AT&T were among the other companies whose shares declined after earnings reports, while Lam Research and IBM rose.
“The market has been looking for bullish catalysts … and it has not been able to find one,” said Adam Sarhan of 50 Park investments.
“Instead, we’re now getting some negative reactions to earnings season. And that’s putting some downward pressure on stocks.”