U.S. stock futures fell on Wednesday night, as traders pored over the company’s latest round of earnings, including disappointing numbers from tech giant Meta.
Futures tied to Nasdaq 100 fell 2.3% and S&P 500 futures fell 1%. Dow Jones Industrial Average futures fell 35 points, or 0.1%.
Shares of Facebook’s parent Meta Platform fell more than 21% in after-hours trading after the company’s quarterly profit fell short of expectations. The company also gave lower-than-expected revenue guidance for the current quarter.
“There’s a lot to dislike” from the Meta report, Metropolitan Capital Advisors CEO Karen Finerman told CNBC’s “Fast Money.” She noted that the company’s revenue growth expectations were the “spookiest” part of the release.
However, Finerman added that the move seemed “a bit overdone.”
Other social media names, including Snap and Twitter, followed Facebook with a lower market share. Snap shares fell 16% after the bell, and Twitter fell more than 8%.
Spotify Technology, meanwhile, fell 10.2% after the company’s latest quarterly figures showed a slowdown in paid subscriber growth.
Wednesday night’s moves come after the major averages recorded a winning four-day streak in the normal trading session.
The Dow is up more than 200 points on the day, while the S&P 500 and Nasdaq Composite are up 0.9% and 0.5%, respectively. Those gains were boosted by a jump in tech shares, led by a 7.3% gain in Alphabet stock.
That 4-day jump helped the major averages cut some of their big losses after a disappointing January. Last month’s drop came as traders braced for potential rate hikes from the Federal Reserve.
“That’s what happens when you’re in a transition period of monetary policy and economic growth,” Canaccord’s Tony Dwyer told CNBC.
On the economic data front, investors will keep an eye on the latest US weekly jobless claims numbers. Economists polled by Dow Jones expect initial claims to have fallen to 245,000 from 260,000.
Those numbers will follow the surprising release of individual payroll data. ADP said on Wednesday that US private payrolls fell 301,000 in January, while economists polled by Dow Jones had forecast a gain of 200,000.
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