CNBC Daily Open: Wall Street sinks, Ford slumps

This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe  here .

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Wall Street sinks
The S&P 500 and Nasdaq Composite had their worst day since 2022 due to lackluster earnings from two tech megacaps. The broader index dropped 2.3%, while the tech-heavy Nasdaq slid 3.6%, with the Dow Jones Industrial Average losing 504 points. Google-parent Alphabet experienced its steepest one-day decline since Jan. 31, falling 5% after YouTube advertising revenue missed estimates. Tesla shares dropped over 12%. Nvidia, Meta Platforms, and Microsoft also fell 6.8%, 5.6% and 3.6%, respectively. The yield on the 10-year Treasury rose, while U.S. oil prices rebounded from a three-day losing streak.

Ford profit miss
Ford Motor shares plunged 11% in extended trading after the company missed Wall Street's second-quarter earnings expectations due to increased warranty costs. The automaker beat revenue estimates and raised its free cash flow target, but maintained its 2024 earnings guidance, disappointing investors. Ford reported adjusted earnings per share of 47 cents, falling short of the expected 68 cents, while automotive revenue reached $44.81 billion, surpassing the anticipated $44.02 billion.

Tesla dives 
Tesla shares plunged over 12% on Wednesday, their steepest decline since 2020, after the electric vehicle maker reported weaker-than-expected quarterly earnings and a further drop in automotive revenue. The decline in revenue, attributed to price cuts and