Big tech stocks led declines across U.S. stock sectors this week
The communications services and consumer discretionary sectors were among the biggest losers this week, with both falling about 6% as Alphabet and The financial results dragged down these two sectors dominated by large technology stocks. The consumer discretionary sector is expected to post its largest weekly decline since early April 2025, led by Tesla, while the communications services sector is expected to post its largest weekly decline in a month. Tesla's stock price plummeted 14.52% after it announced quarterly results on Thursday, its worst earnings day performance on record and putting the stock on track for its biggest weekly decline since March 2020. Although Tesla's revenue beat expectations, weak profit data and concerns about profitability weighed on the market. Alphabet was the biggest drag on the communications services sector, falling 7.1% on Thursday, its worst earnings day performance since February 2025. Although The parent company's revenue exceeded expectations, driven by 82% growth in its cloud business, but investors paid more attention to management's decision to increase its 2025 capital expenditure plan to a maximum of $205 billion. The stock closed below its 200-day moving average on Thursday for the first time since June last year.