By Yasin Ebrahim

Investing.com – The S&P 500 fell Friday, as bearish bets on the tech sector resumed, paced by a rout in Amazon after the e-commerce giant reported its first quarterly loss since 2015.  

The dropped 2.5%; the fell 1.7% or 587 point, and the plummeted 3%.

Amazon (NASDAQ) plunged more than 15% after it reported softer second quarter guidance. This was in response to an unexpected quarterly loss due to the impact of Rivian’s value on results. Rivian (the electric vehicle manufacturer) is now down almost 80% from last year’s public offering.

“[A]A weaker-than expected 2Q revenue guide is now taking a bite out of the bull thesis [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. Stock fell by more than 2 percent.

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.”  

The wider market decline was also attributed to Semiconductor stock. Intel Corporation (NASDAQ) dropped more than 6 percent after weaker-than expected guidance for the second quarter. This is due to supply chain bottlenecks, softer PC demand and lower revenue.

AbbVie (NYSE 🙂 meanwhile cut its guidance for the full year after it reported that revenue was below estimates. Its shares plunged more than 8.8%.

In other news, Tesla (NASDAQ:) pared gains to trade flat after chief executive Elon Musk said he wouldn’t be selling more shares to fund his $44 billion Twitter (NYSE:) take-private deal.