Futures listed on the tech-heavy Nasdaq Composite index fell by about 1% during early trading on Thursday following a wave of weaker-than-expected company earnings. Meta Inc. stocks fell by 4% during pre-market trading after the company admitted that it’s facing an uncertain economic environment, Google’s parent Alphabet Inc. declined by 2.3% after it disappointed with its cloud business figures. Amazon.com slid 1.5%, with the company still due to report its earnings later in the day.
Paul de La Baume, an investment advisor at BNP Paribas Suisse SA, commented that traders are “opting to sell first in fear that sentiment will get worse before it gets better.” A slew of disappointing corporate earnings has prompted investors to reevaluate their valuations which appear to be higher than they should be.
With Treasury yields on the rise and the dollar continuing to strengthen, observers now await US initial jobless claims and GDP numbers that are set to be released later in the day. These metrics are expected to provide a clearer picture of the current economic landscape.