05:01 PM EDT, 07/24/2024 (MT Newswires) -- The Nasdaq Composite and the S&P 500 fell sharply Wednesday amid post-earnings sell-offs in Tesla (TSLA) and Alphabet (GOOG, GOOGL) shares.

The technology-heavy Nasdaq tumbled 3.6% to 17,342.4, while the S&P 500 slid 2.3% to 5,427.1. The Dow Jones Industrial Average fell 1.3% to 39,853.9. Tech slumped 4.1%, the steepest decline among sectors, while consumer discretionary and communication services lost more than 3.7% each. Utilities led the gainers.

Tesla's shares plunged 12%, the steepest decline on the Nasdaq and the second-worst on the S&P 500. The electric vehicle maker late Tuesday posted second-quarter earnings that fell short of market expectations, impacted by lower vehicle prices and restructuring charges.

Alphabet's class A and C shares dropped 5% each Wednesday. The Google ( GOOG ) parent late Tuesday logged stronger-than-expected second-quarter results, though its management flagged caution about decelerating advertisement trends and more difficult comparisons in the second half of the year, D.A. Davidson said in a Wednesday note to clients.

The latest reports from Tesla and Alphabet "heightened investor concerns about the dominance of Big Tech stocks that have boosted Wall Street to record highs," the brokerage wrote.

The US 10-year yield rose 4.7 basis points to 4.29%, while the two-year rate was little changed at 4.43%.

In other company news, Visa (V) shares decreased 4%, the biggest drop on the Dow. The credit card giant late Tuesday posted fiscal-third quarter revenue that fell short of market estimates.

Lamb Weston ( LW ) was the worst performer on the S&P 500, down 28%. The frozen fries maker guided for an annual decline in fiscal 2025 earnings after posting an unexpected decrease in revenue and below-forecast earnings for its fourth quarter.

Enphase Energy ( ENPH ) shares jumped nearly 13%, the top gainer on the S&P 500, following price target adjustments from analysts as the company reported second-quarter results late Tuesday.

AT&T ( T ) followed Enphase on the S&P 500, up 5.2%. The telecommunication giant's second-quarter earnings fell year over year, though it added more postpaid phone subscribers than expected and maintained its full-year earnings outlook.

West Texas Intermediate crude oil rose 0.6% to $77.45 a barrel Wednesday. Commercial crude stockpiles in the US fell more than forecast last week, with gasoline posting a sizable draw, government data showed Wednesday.

In economic news, new-home sales in the US fell unexpectedly last month while median prices at the national level returned to sequential growth, government data showed.

Mortgage applications in the US pulled back last week despite decreasing interest rates across most loan types, as affordability challenges amid high home prices continued to weigh on prospective home buyers, the Mortgage Bankers Association said.

US private-sector output growth in July increased to its highest level since April 2022 led by the service sector, while the one-year outlook fell to a three-month low, according to S&P Global's ( SPGI ) flash purchasing managers' index.

Gold dropped 0.4% to $2,398.70 per troy ounce, while silver lost 0.8% to $29.09 per ounce.