Nasdaq 100 futures slump more than 2% as Facebook parent set to slump 19%

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U.S. stock futures on Thursday pointed to the end of a four-day winning streak, pressured by the weak outlook from social-media giant Meta Platforms.

  • Futures on the Dow Jones Industrial Average YM00, -0.37% fell 133 points, or 0.4%, to 35359
  • Futures on the S&P 500 ES00, -1.21% dropped 1.1%, or 52 points, to 4525
  • Futures on the Nasdaq 100 NQ00, -2.29% slumped 2.2%, or 332 points, to 14783

On Wednesday, the Dow Jones Industrial Average DJIA, +0.63% rose 224 points, or 0.63%, to 35629, the S&P 500 SPX, +0.94% increased 43 points, or 0.94%, to 4589, and the Nasdaq Composite COMP, +0.50% gained 72 points, or 0.5%, to 14418. All three indexes have gained ground over the prior four sessions, with the Nasdaq surging 8% over that time span.

What’s driving markets

Meta Platforms FB, +1.25% traded 19% lower in premarket action, as the Facebook parent not only missed sales and used growth estimates for the fourth quarter but warned inflation and competition from the likes of TIkTok would weigh on first-quarter results.

“Disappointing earnings and an uncertain outlook for Meta, the firm behind names such as Facebook and Instagram, darkened the mood in the markets, generating some anxiety over the tech sector as a whole,” said Ricardo Evangelista, senior analyst at ActivTrades.

Snap SNAP, -4.72% and Pinterest PINS, -8.93% both saw pressure after the Meta Platforms results, with both companies due to report results after the close. Spotify Technology SPOT, -5.75% also reeled after issuing a light subscription forecast.

Amazon.com AMZN, -0.38% will be the last of the megacap tech giants to report results after the close of trading.

There’s a busy slate on the economics calendar, with data including the latest reports on jobless claims and the services sector, a confirmation hearing for a trio of Federal Reserve nominees and interest-rate decisions coming from the Bank of England and the European Central Bank.

The U.K. central bank is forecast to make its second rate hike in as many meetings by raising its main policy rate to 0.5%.

This article was originally published by Marketwatch.com. Read the original article here.

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