© Reuters. S&P 500 closes lower as Twitter, Intel selloff trigger tech rout
Investing.com – The S&P 500 closed lower Friday as a wave of selling in tech led by Twitter and Intel offset data showing the U.S economy churned out solid growth in the second quarter.
The fell about 0.30%. The fell 0.66%, while the fell about 1.46%.
A second-straight day of selling was seen in tech, dragging the broader market lower. Twitter and Intel stocks tumbled after their quarterly numbers failed to impress investors.
Twitter (NYSE:) stock fell 20.54% after the social media company’s in-line earnings and above-consensus revenue was overshadowed by monthly active users (MAUs) growth that fell short of consensus and weak earnings guidance.
Twitter added 335 million MAUs in the second quarter, but that was short of the 338.5 million MAUs analysts had forecast.
Intel (NASDAQ:) stock fell 8.6%. The chipmaker posted an earnings beat on both the top and bottom lines, but said it was delaying the , raising fears that rival, Advanced Micro Devices (NASDAQ:), could gain market share.
The slump in both Twitter and Intel more than offset modest gains in Amazon.com (NASDAQ:) stock after it posted above-consensus earnings on Thursday.
Falling tech stocks dominated market direction, even as investors cheered data showing the U.S. economy remained on solid footing. But analysts warned that the pace of growth may not last.
increased at a 4.1% annual rate in the April-June period, the Commerce Department said Friday in its first estimate, in line with economists’ forecast.
“While we expect the economy to remain strong in the near term, we see growth slowing sometime next year as fiscal stimulus fades and tighter monetary conditions begin to bite,” BNP Paribas said in a note to clients Friday.
Sentiment on equities was also soured