U.S. stock futures fell on Wednesday morning after disappointing third-quarter results from Alphabet marked a foreboding begin to Big Tech earnings this week.
Dow Jones Industrial Average futures fell by 74 points, or 0.23%. S&P 500 and Nasdaq 100 futures declined 0.89% and 1.88%, respectively.
Shares of Google-parent Alphabet dropped greater than 6% in prolonged trading. The web search giant missed expectations on the highest and bottom lines. Alphabet also reported a decline in YouTube ad revenue, which spurred investors to deliberate the outlook for other tech firms that depend on ad spending.
“I believe we’ve to take an enormous picture perspective and recognize that nobody’s really immune on this market, there’s a slowdown in digital ad spend,” Sand Hill Global Advisors’ Brenda Vingiello said Tuesday on CNBC’s “Closing Bell: Additional time.”
Other mega-cap tech stocks declined in after hours trading on the back of the report. Shares of Meta Platforms fell 4.1%, and Amazon slipped 2%.
Meanwhile, Microsoft declined about 3% after the tech giant reported weaker-than-expected cloud revenue in its latest quarterly results, despite beating earnings and revenue estimates.
In the course of the regular session Tuesday, the Dow Jones Industrial Average advanced 337 points, or about 1.1%. The S&P 500 rose 1.6%, while the Nasdaq Composite jumped 2.2%. Those gains, on the back of a drop in bond yields, helped the most important averages extend their rally for a 3rd straight day.
Traders predict quarterly earnings results from Boeing and Kraft Heinz Tuesday before the bell, in addition to more Big Tech earnings from Meta after the bell.
They’re also looking forward to the most recent economic data on weekly mortgage applications, wholesale inventories and latest home sales.
