US stock futures sink as Meta guidance miss rattles tech By Investing.com

US stock futures sink as Meta guidance miss rattles tech By Investing.com

Investing.com– U.S. stock index futures fell in evening deals on Wednesday, with heavyweight technology stocks seeing renewed weakness after disappointing second-quarter guidance from Facebook owner Meta Platforms Inc (NASDAQ:). 

A spike in Treasury yields also pressured stock markets, as markets grew more nervous over upcoming growth and inflation data that is likely to factor into the Federal Reserve’s outlook on interest rates. 

fell 0.6% to 5,075.00 points, while slid 1.1% to 17,460.75 points by 19:49 ET (23:49 GMT). fell 0.2% to 38,591.0 points. 

Meta slumps 15%, drags down tech peers 

Meta’s shares slid 15% in aftermarket trade to a near three-month low, after it forecast weaker-than-expected revenue for the second quarter due to higher spending on artificial intelligence. 

The guidance largely offset stronger-than-expected first-quarter earnings, and set a dour tone for upcoming earnings from the company’s major technology peers- specifically Microsoft Corporation (NASDAQ:) and Alphabet Inc (NASDAQ:). 

The two fell about 2% and 3% in aftermarket trade, respectively, as Meta’s guidance ramped up concerns that higher spending on AI will largely offset the earnings boost from the technology.

Microsoft and Alphabet are set to report their first-quarter earnings after the bell on Thursday. 

Wall St rebound cut short as rate jitters persist 

Wall Street indexes clocked a middling session on Wednesday, as a rebound from near three-month lows was cut short by persistent fears of higher-for-longer interest rates.

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

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or
remove ads
.

Wall Street indexes had marked a largely negative start to the second quarter, with losses intensifying last week as signs of hot inflation and hawkish comments from the Federal Reserve saw traders price out most expectations for a June interest rate cut. 

Focus this week was on upcoming gross domestic product data- due Thursday- and PCE price index data- due Friday. Both readings are expected to factor into the outlook for U.S. interest rates. 

rose in anticipation of the readings, pressuring stock markets.

A batch of mixed earnings also weighed, as United Parcel Service Inc (NYSE:) and JetBlue Airways Corp (NASDAQ:) sank on weak revenue and a disappointing outlook, respectively. 

Social media stocks, IBM fall in aftermarket trade 

Social media stocks Snap Inc (NYSE:) and Pinterest Inc (NYSE:) fell between 4% and 6% in aftermarket trade, tracking a decline in Meta. 

IBM (NYSE:) slid 8.3% on weak first-quarter earnings, while the firm also announced a $6.4 billion deal to buy 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 Inc (NYSE:) added over 3% after it beat expectations with its first-quarter earnings. 

Source Reference

Latest stories