Stocks Drop on Tech Rout, US to Sell Missiles to Ukraine, More

Investors react sharply to disappointing earnings reports from major tech companies, leading to a significant sell-off in big tech stocks. The Nasdaq 100 index experiences a drop of up to 4.5%, marking its third technical correction of the year. Analysts attribute this downturn to poor performance from key players like Alphabet, Amazon, Intel, and ServiceNow, raising concerns about the sustainability of their growth amidst rising financing costs and increasing debt.

In geopolitical news, the U.S. government approves a $2.1 billion sale of Patriot missiles to Ukraine, following accusations from Ukrainian President Volodymyr Zelensky regarding delays in shipments. This decision underscores the ongoing military support from the U.S. as Ukraine continues to defend against Russian attacks.

The FBI investigates a massive cyber theft involving the Binance crypto exchange, where over $6 billion was stolen, believed to be the work of North Korean hackers. Experts suggest that these hackers may be utilizing advanced artificial intelligence tools to enhance their cyber capabilities, raising alarms about the evolving nature of cyber threats.

In corporate developments, Starbucks CEO Brian Nichols hints at potential expansion beyond a single brand, while the company plans to open approximately 300 new stores in the U.S. by fiscal year 2028 and aims to double its international presence. Meanwhile, the stock market sees significant losses, with the Dow down 572 points and the S&P 500 shedding 140 points.

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