U.S. Markets Mixed as Tesla Plunge Offsets Alphabet Gains

Wall Street delivered a split performance Thursday as Tesla's earnings miss dragged down the Dow Jones Industrial Average while Alphabet's cloud-driven surge lifted the Nasdaq. The divergence highlights growing sectoral fragmentation in equity markets.

Tesla shares cratered 9% after disappointing quarterly results, erasing $50 billion in market value. The electric vehicle maker's struggles overshadowed IBM's 8% decline despite beating earnings estimates—a selloff attributed to underwhelming forward guidance.

Alphabet emerged as the session's bright spot, climbing 1.38% after smashing cloud revenue expectations. The tech giant's $13.6 billion cloud performance and plans for expanded capital expenditures suggest sustained growth in enterprise digital transformation.