Google’s parent company and other tech stocks are weighing on a mixed Wall Street Wednesday as the focus swings back toward how much profit businesses are making.

The S&P 500 was virtually unchanged in midday trading, as more stocks rose in the index than fell. The Dow Jones Industrial Average was up 75 points, or 0.2%, as of 11:45 a.m. Eastern time, and the Nasdaq composite was 0.2% lower.

Tech Giants Face Investor Scrutiny

Alphabet sank 7.8% even though Google’s parent company reported stronger profit for the latest quarter than analysts expected. Investors focused instead on slowing growth for its cloud business, whose revenue fell short of forecasts. They also homed in on the $75 billion Alphabet is budgeting for investments this year, roughly $15 billion more than analysts expected, as it remains in the rush to develop artificial-intelligence technology.

Pressure is growing on Alphabet from Wall Street, and “investors will be asking what new products will be emerging to warrant the higher level of investment,” according to UBS analysts led by Stephen Ju.

Advanced Micro Devices fell 8.1% even though the chip company edged past profit expectations for the latest quarter. It also felt the pain of high expectations. AMD gave a forecasted range for revenue in the first three months of 2025 whose midpoint suggested growth of 30% from a year earlier, but that wasn’t as strong as analysts expected.

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Mattel Shines Amid Tech Slump

Toymaker Mattel helped limit the market’s losses and jumped 15.4% after blowing past analysts’ forecasts for profit in the latest quarter. Strength for its Hot Wheels brand helped make up for some softness for Barbie and other dolls. Mattel also gave a forecast for profit this upcoming year that topped analysts’ expectations.

Economic Concerns and Trade Tensions

Investors always want companies to deliver bigger profits, but the hopes may be even higher than usual given worries about how much faster stock prices have climbed than corporate profits, leaving them looking more expensive. Uncertainty is also hanging over the global economy because of President Donald Trump’s tariffs.

After rocking financial markets around the world at the start of this week, worries about a potentially punishing global trade war have eased a bit after Trump gave 30-day reprieves for tariffs on both Mexico and Canada. That bolstered traders’ hopes that Trump sees tariffs as merely a tool for negotiation, rather than as a long-term policy.

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Market Movements and Company Performance

Yields in the bond market fell Wednesday after a report said growth for mining, finance and other U.S. services businesses was weaker last month than economists expected.

On Wall Street, Fiserv was one of the strongest forces pushing upward on the S&P 500 after the payments and financial technology company topped analysts’ expectations for profit in the latest quarter. It rose 6.7% after it also gave a forecasted range for profit this upcoming year whose midpoint was close to analysts’ expectations.

The Walt Disney Company swung from an early gain to a loss of 1.1% after delivering a stronger profit for the latest quarter, thanks in part to a strong performance for its “Moana 2” movie.