Updated 5 months ago
Stock Futures Drop Ahead of GDP Data and Tech Earnings
U.S. stock futures fell early Thursday as disappointing corporate earnings and elevated bond yields looked set to stall the market rebound.
Futures on the Nasdaq 100 fell 1.0%, S&P 500 futures declined 0.7% and Dow Jones Industrial Average dipped 0.6% ahead of the open. Stocks were mixed Wednesday as bond yields rose–the S&P 500 was flat, the Dow edged lower and the Nasdaq Composite eked out gains.
The market mood was more decisive early Thursday, though, as Meta Platforms’ plunge appeared to set the tone for a tough day ahead. The Facebook and Instagram parent’s shares fell 13% in premarket trading following its first-quarter earnings, and other Big Tech names such as Amazon and Alphabet also dropped.
IBM stock also fell after earnings, pointing more than 8% lower. The tech sector will remain in focus throughout the day as the Google owner is due to report earnings after the close, along with Microsoft. Intel will also post results later in the day, while Comcast, Merck, Southwest Airlines and Caterpillar are among those reporting before the open.
There will also be economic data for investors to keep a close eye on, with first-quarter U.S. gross domestic product data due at 8.30 a.m. Eastern time. The data, along with the Federal Reserve’s preferred inflation metric, the core personal consumption expenditures (PCE) index, Friday could have significant implications for rate-cut expectations.
“There’s the added concern that Friday’s Core PCE update may finally follow this year’s CPI releases by showing an uptick in inflation. That would add to worries that the US Federal Reserve will further delay the timing of its first rate cut,” Trade Nation analyst David Morrison said Wednesday.
The yield on the 10-year Treasury note was flat in early trading, after climbing 4 basis points Wednesday.
