Stocks got smoked on Wednesday as investors digested mixed earnings reports from Microsoft (MSFT) and Alphabet (GOOG, GOOGL) while Treasury yields pushed higher, putting more pressure on already strained tech stocks.

The Dow Jones Industrial Average (^DJI) fell a modest 0.3%, but the benchmark S&P 500 (^GSPC) tumbled almost 1.5% and the Nasdaq Composite (^IXIC) dropped nearly 2.5% in its worst day in eight months. The S&P 500 and Nasdaq closed at their lowest levels since May.

Alphabet shares slid more than 9% after the Google parent beat on earnings and revenue but fell short in its cloud business. By contrast, Microsoft stock was a rare bright spot for the market, as it popped 2% after its own double beat showed its bets on AI were paying off for its cloud segment.

Other megacaps lost ground as the mixed picture sapped some faith in Big Techs, which have powered gains in stocks this year. Amazon stock (AMZN) and Facebook parent Meta (META) — which reports results after the close Wednesday — were both down more than 4%.

Tech stocks have borne the brunt of pressure from surging Treasury yields, which rose again early Wednesday after stabilizing somewhat. The 10-year yield (^TNX) climbed above 4.9%, while the 30-year yield (^TYX) advanced above the 5% level.

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