The Dow dropped 353.51 points, or 1.3%, to close at 26,652.33. The S&P 500 slid 1.2% — snapping a four-day winning streak — to 3,235.66. The Nasdaq Composite dropped 2.3% to end the day at 10,461.42. Sharp losses from the major tech stocks led the broader market lower.
Microsoft shares dropped 4.4% despite reporting better-than-expected earnings. Apple slid 4.6% and Amazon dropped 3.7%. Facebook ended the day lower by 3% along with Google-parent Alphabet. One trader pointed out the group "came into the CQ2 reporting season with impossibly high expectations."
The latest unemployment figures also dented market sentiment. U.S. weekly jobless claims came in at 1.416 million for last week, marking the 18th straight week in which initial claims totaled more than 1 million. Economists expected another 1.3 million workers to have filed initial claims for state unemployment benefits, according to Dow Jones.
Verizon is set to report earnings on Friday. New home sales are also on deck.
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