The Nasdaq fell on Tuesday as shares of Google-parent Alphabet tumbled following a revenue miss and Apple dropped, though the S&P 500 eked out another record closing high. All three major indexes posted their best monthly percentage gains since January, wrapping up a month that brought the S&P 500 and Nasdaq back to record-high territory and helped to restore investors’ belief in the decade-long bull run. A less-worse-than-expected earnings season, positive economic data and hints of progress in US-China trade talks have helped drive the recent gains.
Weighing on the Nasdaq Tuesday and limiting gains in the S&P 500, Alphabet Inc shares fell 7.5 per cent and were on track for their worst decline since January 2012, after the company reported its slowest revenue growth in three years. The S&P communication services sector slid 2.5 per cent, dragged down by Alphabet, and registered its biggest percentage fall in about four months.
Apple shares dropped 1.9 per cent during the session, but reversed course and were trading up 4.3 per cent after the bell following the release of its results. S&P 500 e-mini futures also jumped after Apple’s results and were last up 0.4 per cent. With more than half of the S&P 500 companies reporting, analysts now expect first-quarter earnings to have risen slightly, a stark reversal from the 2 per cent fall estimated at the beginning of the month, according to Refinitiv data.Morning-Market-Note-Wednesday-1st-May