The Nasdaq led U.S. stocks lower on Wednesday after disappointing results from Alphabet and Tesla raised concerns that Big Tech's power to fuel gains was diminishing.

The benchmark S&P 500 Index (^GSPC) fell about 1.4% and the Dow Jones Industrial Average (^DJI) fell about 0.9%. The tech-heavy Nasdaq Composite (^IXIC) was the biggest loser, down about 2.1%.

Stocks are down as investors digest mixed quarterly results from Alphabet (GOOGL, GOOG), the parent company of Google, and Tesla (TSLA), the first of the “Magnificent 7” megacaps to report results. Shares of electric-vehicle maker Tesla fell more than 12% in morning trading, while Alphabet shares fell about 4%.

Investors are bracing for the next wave of earnings, with Chipotle (CMG), Ford (F) and IBM (IBM) set to report results after the bell Wednesday.

In economic news, S&P Global data released Wednesday showed that U.S. economic activity grew at its strongest pace in more than two years. That's followed by second-quarter GDP figures on Thursday and Friday's key June PCE inflation report, the Federal Reserve's preferred report.

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