Technology stocks took a hit in US equity futures on Thursday, with Nasdaq 100 contracts falling 0.9% led by Meta Platforms Inc.’s disappointing outlook. Meta’s parent company, Facebook, saw a premarket tumble of up to 15% after projecting lower-than-expected second-quarter sales and increased spending estimates for the year. This decline also affected Alphabet Inc. and Microsoft Corp., with S&P 500 futures sliding 0.6%.
In Europe, the Stoxx 600 Index edged lower as traders digested a flurry of corporate updates on the busiest day of the earnings season. Anglo American Plc saw a 14% surge after rival BHP Group made a takeover proposal valuing it at £31.1 billion ($38.8 billion), potentially creating the world’s largest copper miner.
Expectations for earnings from tech giants have been high following the artificial intelligence-fueled rally on Wall Street. However, the market’s reaction to Meta’s outlook serves as a reality check, prompting a more realistic valuation assessment according to Sonja Laud, chief investment officer at Legal & General Investment Management.
Aside from earnings results, traders are eagerly awaiting US economic growth figures, with economists predicting GDP likely cooled to around 2.5% in the first quarter. Any surprises in these figures could impact Federal Reserve interest-rate cut expectations.
In the Asian markets, a regional gauge dropped 1% as shares in South Korea and Japan tumbled. However, stocks outperformed in Hong Kong due to increased purchases by Chinese investors.
Meanwhile, Secretary of State Antony Blinken called for laying out differences between the world’s largest economies during talks in China, as the threat of US sanctions targeting Beijing over its support of Russia’s war in Ukraine looms.
Key corporate highlights include Barclays Plc, Deutsche Bank AG, BNP Paribas SA, Unilever Plc, Nestle SA, STMicroelectronics NV, AstraZeneca Plc, Hermes, Pernod Ricard SA, and Holcim Ltd. reporting their quarterly results.
Key events to watch this week include US GDP, Microsoft and Alphabet earnings, Japan rate decision, and Exxon Mobil and Chevron earnings.
In the markets, S&P 500 futures fell 0.5%, Nasdaq 100 futures fell 0.9%, and Dow Jones Industrial Average futures fell 0.3%. The Stoxx Europe 600 fell 0.2%, and the MSCI World index fell 0.1%. Currencies saw the euro rise 0.3% to $1.0727, the British pound rise 0.4% to $1.2511, and the Japanese yen fall 0.2% to 155.62 per dollar. Bitcoin fell 0.3% to $63,858.46, and Ether fell 0.2% to $3,124.7. Bond yields and commodity prices remained relatively stable.