Communications services and consumer discretionary sectors are the worst performers this week, with both falling approximately 6%, as earnings reports from Alphabet and Tesla weighed heavily on these tech-heavy segments.
The consumer discretionary sector is on track for its largest single-week drop since early April 2025, with Tesla leading the decline. The communications services sector is poised to record its steepest weekly decline in one month. After releasing quarterly results on Thursday, Tesla shares plummeted 14.52%, marking the worst earnings-day performance on record and putting the stock on course for its biggest weekly drop since March 2020. Although Tesla revenue surpassed expectations, weak profit data and concerns about profitability weighed on investor sentiment.
Alphabet was the largest drag on the communications services sector, falling 7.1% on Thursday, its worst earnings-day performance since February 2025. Despite the Google parent company's revenue exceeding estimates, driven by 82% growth in its cloud business, investors focused on management's decision to raise its 2025 capital expenditure plan to as high as $205 billion. The stock closed on Thursday below its 200-day moving average for the first time since June 2024.
Comments