So much for the tech stock rally.
Disappointing corporate earnings, most notably the reaction to Metaplatforms' results, are putting pressure on the industry early Thursday.
After the tech-heavy Nasdaq Composite Index rose 0.1% on Wednesday, Nasdaq 100 futures fell 0.9% before closing. That was the index…
So much for the tech stock rally.
Disappointing corporate earnings, and most notably the reaction to Metaplatform's results, are putting pressure on the industry early Thursday.
Nasdaq 100 futures fell 0.9% before closing after technology-heavy trading.
Nasdaq Composite Index
It rose 0.1% on Wednesday. The index rose for the third consecutive day after six consecutive days of decline. The short-lived winning streak may end Thursday.
Meta shares were the worst performer in the S&P 500, falling 12.5% in premarket trading. The Facebook and Instagram parent company's June quarter outlook was weaker than expected, and the company announced plans to ramp up spending on artificial intelligence, which appears to have spooked investors.
The sharp decline accelerated the decline of other members of the so-called Magnificent Seven. Alphabet fell 2.9% and Microsoft fell 1.7%. Both companies plan to announce financial results after the transaction closes. Amazon shares fell 2.3%, Nvidia rose 0.3% and Apple was flat.
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Other social media platforms related to online advertising also fell, with Snap down 4.9% and Pinterest down 3.7%.
International Business Machines stock fell 8.3% before closing, further deteriorating sentiment in the sector. IBM's first-quarter revenue fell short of expectations, and the tech giant announced it had reached an agreement to acquire cloud software company HashiCorp for $6.4 billion.
However, the chip sector was more mixed, with Intel and Micron Technology, which report earnings later in the day, posting modest gains.
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Advanced Micro Devices was down 0.4%.
super microcomputer
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The company, which makes AI servers, fell 0.8% as its recovery from Friday's 23% slump appears to stall, while SoFi Technologies and Palantir Technologies.
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It also fell.
Email Callum Keown at callum.keown@barrons.com.
