Nasdaq futures fell in overnight trading Thursday as investors demonstrated a fresh round of corporate earnings and disappointing results from Snap, sending shares on social media reeling. .
Futures contracts tied to the Dow Jones Industrial Average fell 0.15%, or 48 points. S&P 500 futures fell 0.37% and Nasdaq 100 futures fell 0.68%.
Shares of parent company Snapchat plummet 26% after announced second-quarter results that fell short of analysts’ expectations and noted that it plans to slow hiring.
The results from Snap have affected social media and other tech stocks that investors fear could be hit by slowing online ad sales. Shares of Meta Platforms, Alphabet, Twitter and Pinterest fell 5.2%, 2.9%, 1.8% and 7% respectively after the news.
The Invesco QQQ Trust down 0.72% after hours.
The news ruined what has been a hot streak for tech stocks. Nasdaq Synthesis post the third active session in a row on Thursday. That comes from positive quarterly results from Tesla, up nearly 10% on Thursday.
The Nasdaq ended its normal trading day on Thursday, 1.36% higher to close at 12,059.61, while the S&P 500 rose 0.99% to 3,998.95. The Dow Jones Industrial Average added 162.06 points, or 0.51%, to 32,036.90. The Dow is on track for a 2.4% weekly gain, while the S&P and Nasdaq of course closed the week 3.5% and 5.3% higher, respectively.
Shares of growth-focused tech companies jumped in trading on Thursday as the dollar cooled following its surge. The European Central Bank raised interest rates by 50 basis points in First increase in 11 years while initial jobless claims hit their highest level since November 2021.
“This shows you that market expectations are really low, that a little bit of good news can go a long way when you have low expectations,” said Truist’s Keith Lerner. know, note that investors are returning to growth stocks even amid this weak economic data. .
On the earnings front, investors are awaiting results from American Express, Verizon and Twitter slated to report before the bell on Friday.
