Stocks fell on Friday as poor earnings from Intel and Twitter trumped a strong growth reading for the economy.
The Nasdaq Composite dropped 1.46 percent to 7,737.42, its biggest drop since June 27, when it fell 1.54 percent. The S&P 500 fell 0.7 percent to 2,818.82 with tech dropping 2 percent. The Dow Jones Industrial Average declined 76.01 points to close at 25,451.06.
Tech stocks posted their second straight day of steep losses. On Thursday, the sector dropped more than 1.5 percent as Facebook posted its worst day ever. Shares of Intel and Twitter led the charge lower on Friday, falling after the release of their latest quarterly results.
The decline comes after the Commerce Department said the U.S. economy grew last quarter at its fastest rate since the third quarter of 2014.
"When growth companies, particularly tech companies, are priced to perfection, the price for imperfection is quite high," said Michael Arone, chief investment strategist at State Street Global Advisors. "Meanwhile, the reward for beating on earnings is much lower than usual."
"It's a consequence of where we are in the bull market," Arone said.
Intel dropped more than 8.5 percent after announcing delays on its next generation chips. The company did report better-than-expected earnings, however. Twitter, which reported earnings that matched expectations, dropped more than 20 percent after it said its number of monthly active users fell.