## [# SPY, Nasdaq ETFs Have Worst Day in 2 Years on Tech Drop](/sections/news/tesla-drags-down-mag-seven-qqq)
# SPY, Nasdaq ETFs Have Worst Day in 2 Years on Tech Drop
- • News
3 Updates
[  ](/authors/dj-shaw)
Wed, July 24, 2024 At 4:15 PM EDT
[DJ Shaw ](/authors/dj-shaw) | Finance Reporter | [ Follow Author ](/etf/login)
## SPY dips 2.3% following disappointing Alphabet, Tesla earnings.
The S&P 500 and Nasdaq declined steeply, with the Nasdaq having its worst day in nearly two years, following underwhelming earnings reports from megacap tech companies Alphabet and Tesla.
The Nasdaq-tracking [**Fidelity NASDAQ Composite Index ETF (ONEQ)**](/oneq) slumped 3.4%.
The blue chip [**SPDR Dow Jones Industrial Average ETF Trust (DIA)**](/dia) fell 1.2%, while the [**SPDR S&P 500 ETF Trust (SPY)**](/spy) dropped 2.3%.
Several tech ETFs were down, including those with large holdings in Alphabet, Tesla, Microsoft, Nvidia, and Meta Platforms: The [**Consumer Discretionary Select Sector SPDR Fund (XLY)**](/xly), which allocates 18.3% to Tesla, fell 4.1% while the [**Communication Services Select Sector SPDR Fund (XLC)**](/xlc), 12.6% of which is Alphabet stock, declined 2.6%.
[**Technology Select Sector SPDR Fund (XLK)**](/xlk), which is 22% made up of Microsoft, dropped 4.1%. [**Vanguard Communication Services ETF (VOX)**](/vox), which allocates 23.5% to Meta Platforms slid 3.2% and the [**Strive U.S. Semiconductor ETF (SHOC)**](/shoc), which allocates 27.3% to Nvidia, decreased 5.4%.
The [**First Trust Consumer Staples AlphaDEX Fund (FXG)**](/fxg) fell 0.7%, partly due to its 3.1% holding in Lamb Weston. The potato and french fry company tanked 28% after issuing a disappointing report for the fiscal fourth quarter.
In contrast, the [**Invesco Solar ETF (TAN)**](/tan) rose 0.9%, boosted by its 9.2% holding in Enphase Energy. The solar energy company’s stock surged around 13% after posting third-quarter guidance that exceeded expectations.
[  ](/authors/kent-thune)
Wed, July 24, 2024 At 1:45 PM EDT
[Kent Thune ](/authors/kent-thune) | CFP, Senior Content Editor | [ Follow Author ](/etf/login)
## Volatility Spikes as Tech Stocks Continue to Fall
The tech-heavy Nasdaq 100 Index continued to receive a beating in afternoon trading as lackluster earnings from two of its largest components disappointed investors.
Meanwhile, the CBOE Volatility Index, also known as The Vix or fear index, rose to its highest level in nearly two months, reflecting increasing anxiety among the investor herd.
[**Tesla, Inc. (TSLA)**](https://www.etf.com/stock/TSLA) reported lower-than-expected profits and margins, raising concerns about the company's growth trajectory and profitability while [**Alphabet, Inc. (GOOG)**](https://www.etf.com/stock/GOOG) reported positive quarterly results overall, but investors were disappointed by the performance of YouTube advertising and the company's increased spending on AI initiatives.
These factors, combined with broader market concerns about the tech sector and potential economic slowdown, contributed to the sell-off in both stocks and the broader growth stock benchmark, the [**Invesco QQQ Trust (QQQ)**](/qqq), which was down nearly 3%.
The [**ProShares VIX Short-Term Futures ETF (VIXY)**](/vixy) jumped 10% in afternoon trading, marking the largest increase since May 29. An increase in The VIX benchmark indicates increased market volatility and investor fear.
[  ](/authors/jeff-benjamin)
Wed, July 24, 2024 At 10:45 AM EDT
[Jeff Benjamin ](/authors/jeff-benjamin) | Wealth Management Editor | [ Follow Author ](/etf/login)
## Investors pull Tesla shares down 12% on earnings weakness
Disappointing earnings reports from Magnificent Seven members Tesla Inc. and Alphabet Inc. are weighing on the tech-heavy [**Invesco QQQ Trust ETF (QQQ)**](/qqq), which is down more than 2% in midmorning trading.
Shares in Tesla, which reported second-quarter earnings last night, dipped 12%, while Alphabet, which also reported earnings Tuesday, shed 3.6%.
Funds whose gains multiply when tech stocks fell surged. The [**ProShares UltraPro Short QQQ ETF (SQQQ)**](/sqqq) added 7.2% and topped the list of most active ETFs. The biggest gains belonged to single-stock ETFs shorting Tesla, led by the 23% spike in [**AXS Tesla Bear Daily ETF (TSLQ)**](/tslq).
On the other end, single-stock ETFs that leverage rising Tesla shares took the biggest hit, led by the [**GraniteShares 2X Long Tesla Daily ETF (TSLR)**](/tslr)'s 23% dive.
The tech selloff also spread to the broader market, as the [**SPDR S&P 500 ETF Trust (SPY)**](/spy) lost 1.4%.
Meanwhile, the more diversified Invesco [**S&P 500 Equal Weight ETF (RSP)**](/rsp) was down just 75 basis points in morning trading.
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