In New York: On Monday, the Nasdaq closed lower, falling behind the S&P 500 and the Dow. This was due to pressure from high-profile megacaps as investors awaited Microsoft's and Tesla's results, and Tesla shares fell due to concerns about its spending plans.
After the automaker raised its 2023 capital expenditure forecast to increase output, Tesla Inc. finished down 0.5 percent, making it the second-biggest drag on the benchmark S&P 500 after Microsoft Corp. Shares of Microsoft, which have gained more than 17 percent so far this year, were under pressure on Monday as investors appeared concerned about the company's results, which are due out on Tuesday. Amazon.com Inc., Alphabet Inc., and Meta Platforms Inc.—all of which are scheduled to report this week—were another heavyweight laggard.
Wall Street has been supported this year by a rally in these stocks, and investors are concerned about whether the gains can continue in light of the gloomy economic outlook.
"Individuals are a little provisional that the outperformance may not go on in profit season, which hitherto has been significantly surprisingly good. In all actuality the bar was low," said Randy Frederick, overseeing chief, exchanging and subsidiaries at Charles Schwab in Austin, Texas.