Stock futures fell in overnight trading on Thursday as major tech stocks struggled after disappointing earnings reports.
S&P 500 futures were down 0.3% and Nasdaq 100 futures were down 0.6%. Futures contracts on the Dow Jones Industrial Average were flat.
Amazon shares fell more than 3% in extended trading after the e-commerce giant missed its third-quarter earnings and revenue forecast. The company also issued disappointing guidance on the critical leave period.
Apple stock fell 4% after the tech giant’s quarterly revenue missed expectations amid larger-than-expected supply constraints on iPhone, iPad and Mac devices.
The overnight action came after the heavy S&P 500 and Nasdaq Composite closed Thursday’s session at record levels as investors shrugged off disappointing economic data.
The US economy grew at an annualized pace of 2% in the third quarter, its slowest increase since the end of the recession in 2020 and missing a 2.8% growth forecast.
“GDP told us what we already know, the economy slowed significantly in the third quarter,” said Ryan Detrick, chief market strategist at LBL Financial. “The good news is that we see the next few quarters more than offsetting the slowdown, as COVID trends continue to improve.”
The stock market was raking in records amid strong earnings. Nearly half of the Standard & Poor’s 500 reported quarterly results, and more than 80% of them beat earnings estimates from Wall Street analysts. The S&P 500 companies are expected to post a profit of 38.6% year over year.
All three major averages are on track to post a winning week, which is the fourth positive week in a row. In the month to date, the S&P 500 is up 6.7%, on track for its best monthly performance since November 2020. The Dow Blue Index is up 5.6% in October, while the Nasdaq is up 6.9%.