Artificial intelligence cloud computing stocks faced a downturn on Wednesday, with Nebius shares dropping over 8%, Lumentum falling 7%, and CoreWeave hitting a 52-week low with a decline of more than 7%. This sell-off is attributed to worries about the substantial debt these companies have accumulated and growing opposition to data centers.
Additionally, Lemonade's shares plummeted 22% after reporting a 30% increase in gross spending to $64 million and a 34% rise in technology development expenses to $30 million. SoFi Technologies also fell 9% to a 52-week low despite beating second-quarter earnings expectations and raising its full-year revenue guidance, as it reported a decline in technology platform revenue.
Lennox International's shares dropped 20% after it lowered its full-year earnings guidance to a range of $23 to $24 per share, below the FactSet consensus of $24.44. Caterpillar's stock fell over 7% following a downgrade by Baird Equity Research, which cited emerging investment hurdles.
The VanEck Semiconductor ETF continued its decline, dropping nearly 4% for the fifth consecutive day, with major semiconductor companies like Advanced Micro Devices and Nvidia also experiencing losses. In contrast, Mondelez's shares rose 4% after reporting a second-quarter profit of 73 cents per share on revenue of $9.36 billion, surpassing analyst expectations.
Biogen's shares increased by 2% after it beat revenue and earnings estimates and raised its full-year adjusted EPS guidance. GE HealthCare Technologies saw a 10% rise in its shares after reporting adjusted earnings per share of $1.13, exceeding the consensus estimate.
Ford Motor's shares climbed 3% after it reported second-quarter adjusted earnings that beat expectations and raised its 2026 earnings outlook, despite slightly lower automotive revenue. Meanwhile, Rocky Brands surged about 15% after reporting a significant increase in second-quarter earnings per share.
On the downside, PPG Industries and KLA Corp both saw declines after missing earnings estimates and issuing disappointing guidance, respectively. Manhattan Associates experienced a 25% surge after exceeding analyst expectations for earnings and revenue and raising its full-year forecasts