Technology stocks

Nasdaq futures slide as Snap results weigh on tech stocks

Nasdaq futures fell in early trading on Friday as investors digested another batch of corporate earnings and disappointing results from Snap, which sent stocks tumbling on social media.

Futures contracts linked to the Dow Jones Industrial Average slipped 0.11%, or 36 points. S&P 500 futures fell 0.36% and Nasdaq 100 futures fell 0.71%.

Shares of Snapchat’s parent company fell 26% after reporting second-quarter results that fell short of analysts’ expectations and noting that it plans to slow hiring.

Snap’s results weighed on other social media and tech stocks that investors feared could be hurt by slowing online ad sales. Shares of Meta Platforms, Alphabet, Twitter and Pinterest fell 5.2%, 2.9%, 1.8% and 7%, respectively, following the news.

The Invesco QQQ Trust slipped 0.72% after hours.

The news ruined what has been a hot streak for tech stocks. The Nasdaq Composite released its third consecutive positive session on Thursday. That came on the heels of Tesla’s positive quarterly results, which jumped nearly 10% on Thursday.

The Nasdaq ended the regular trading day Thursday up 1.36% 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 settle at 32,036.90. The Dow Jones is on track for a weekly gain of 2.4%, while the S&P and Nasdaq are on track to end the week up 3.5% and 5.3%.

Shares of growth-oriented tech companies surged in trade on Thursday as the dollar cooled after its surge. The European Central Bank raised rates by 50 basis points in its first increase in 11 years, while initial jobless claims hit their highest level since November 2021.

“It 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 Keith Lerner of Truist, noting that investors have returned to growth stocks even in amid these weak economic data. .

On the earnings front, investors await results from American Express, Verizon and Twitter due to report before the bell on Friday.