US stock futures sink as Meta guidance miss rattles tech By

US stock futures sink as Meta guidance miss rattles tech By– U.S. stock index futures fell on Wednesday as heavyweight technology stocks saw further weakness following disappointing second-quarter forecasts from Facebook owner Meta Platforms Inc (NASDAQ:).

A rise in Treasury yields also put pressure on stock markets, as markets became more nervous about upcoming growth and inflation data that are likely to be factored into the Federal Reserve’s outlook in interest rate matters.

fell 0.6% to 5,075.00 points, while sliding 1.1% to 17,460.75 points as of 7:49 p.m. ET (11:49 p.m. GMT). fell 0.2% to 38,591.0 points.

Meta falls 15%, drags down tech peers

Shares of Meta fell 15% in the aftermarket to their lowest level in nearly three months, after it forecast weaker-than-expected second-quarter revenue due to higher spending on artificial intelligence .

The guidance more than offset higher-than-expected first-quarter earnings and set a gloomy tone for upcoming earnings for the company’s major technology peers, particularly Microsoft Corporation (NASDAQ:) and Alphabet Inc (NASDAQ:).

Both fell about 2% and 3% respectively in aftermarket trading, as Meta’s forecast heightened concerns that higher spending on AI would more than offset higher profits from of technology.

Microsoft and Alphabet are expected to report their first quarter results after the bell on Thursday.

Wall Street rebound stalled as rate nervousness persists

Wall Street indexes posted a mid-session Wednesday as a rebound from a near three-month low was halted by lingering fears of higher and longer interest rates.

The rose slightly to 5,071.63 points, while the ended up 0.1% at 15,712.75 points on Wednesday. The fell 0.1% to 38,460.92 points.

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Wall Street indexes marked a largely negative start to the second quarter, with losses deepening last week as signs of high inflation and hawkish comments from the Federal Reserve saw traders anticipate a rate cut. interest in June.

This week’s focus has been on the upcoming gross domestic product data, due Thursday, and PCE price index data, due Friday. Both numbers should be factored into the outlook for US interest rates.

rose ahead of the figures, putting pressure on stock markets.

A series of mixed profits also weighed, as Plain package Service Inc (NYSE:) and JetBlue Airways Corp (NASDAQ:) sank due to weak revenue and disappointing prospects, respectively.

Actions on social networks, IBM drop in spare parts trade

Actions on social networks Snap Inc. (NYSE:) and Pinterest Inc. (NYSE:) fell between 4% and 6% in aftermarket trading, following a decline in Meta.

IBM (NYSE:) fell 8.3% on weak first-quarter earnings, while the company also announced a $6.4 billion purchase deal. Hashicorp Inc. (NASDAQ:).

On the other hand, Ford Motor Company (NYSE:) rose 1.7% on strong first quarter earnings and positive guidance. Chipotle Mexican Grill (NYSE:) added more than 3% after beating expectations with its first quarter results.

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