By Yasin Ebrahim

Investing.com – The Dow slumped Friday, closing out a brutal month for stocks as wave of big tech earnings this week failed to coax the bulls out of hiding.  

It fell by 2.8% (939 points), 3.5% (355 points) and 4% (4/4). Nasdaq suffered its largest monthly loss in a month since 2008. 

Amazon (NASDAQ: ) lost more than 14% on Monday, posting its largest one-day drop since 2006. The e-commerce company reported softer second-quarter guidance after a surprise quarterly loss. It was due to the unexpected loss in Rivian’s value. Rivian is the maker of electric vehicles, and has lost nearly 80% in its first year on the stock exchange.

“[A]The bull thesis is being snatched by a weaker than expected 2Q revenue guide [for Amazon] that is predicated on accelerating revenue and OI (operating income) growth as we move through 2022,” Deutsche Bank said in a note as it cut its price target on the stock to $3,500 from $4,100.

Apple (NASDAQ:) meanwhile beat the fiscal second quarter estimates but fell short of guidance. It also highlighted the effects of China’s demand- and supply-chain problems. The stock dropped more than 3%.

The tech giant delivered a record quarter of services revenue amid growing install base, but “increasing macro uncertainty and inflationary pressures will likely result in lower product demand during 2022,” Credit Suisse said after lifting its price target on the stock to $169 from $168.

The slew of tech earnings seen this week from megacap tech including Alphabet (NASDAQ:), Meta Platforms (NASDAQ:), Microsoft Corporation (NASDAQ:), Apple and Amazon, which collectively make up more than a quarter of the S&P 500 weighting, was seen by many as a pivotal week that could either add to the negative sentiment on the broader market, or provide much needed stability.

A rising interest environment could put investors under pressure and hurt sentiment about growth. This may force them to think twice about how large a part big tech plays in their portfolios.

“[T]hese are the stocks that have propelled the market for years and now we’re going to have to get back to more of an equilibrium,” Eric Diton, president and CEO of The Wealth Alliance, told Investing.com in an interview on Friday. “These stocks, as we’ve said for a long time, are just way over owned.”  

Semiconductor stocks also contributed to the wider market selloff. Intel Corporation (NASDAQ 🙂 plunged nearly 7% after its second quarter guidance was weaker than anticipated due to supply chain bottlenecks, softer PC demand, and lower earnings.

AbbVie’s (NYSE:) cut its full-year guidance, citing revenue that was less than expected. Its shares dropped more than 6%.

In other news, Tesla (NASDAQ:) closed in the red  after chief executive Elon Musk said he wouldn’t be selling more shares to fund his $44 billion Twitter (NYSE:) take-private deal. The Tesla sold about $8.5 billion of Tesla after agreeing to buy Twitter.