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Nasdaq Futures Crash on Weak Tech and AI Results
30 Oct
Summary
- Nasdaq futures plummeted over 500 points after market close.
- Alphabet shares dropped 13%, erasing $500 billion in market cap.
- Amazon and Intel reported disappointing results, causing stocks to tumble.
US markets on Wall Street experienced a downturn on Thursday, with the Dow Jones and S&P 500 closing lower. However, the Nasdaq showed significant underperformance, falling 1.4%.
Following market closure, Nasdaq futures experienced a dramatic plunge of over 500 points. This steep decline was triggered by disappointing earnings reports from major tech companies, including Amazon and Intel, which sent their stocks tumbling in extended trading.
The primary drag on the Nasdaq was Alphabet, whose shares plummeted 13% to a record low, erasing $500 billion in market capitalization. This sell-off was attributed to the company's negative free cash flow reported at the end of its third quarter.
Adding to the pressure, software services provider ServiceNow also plunged 27% following its own disappointing results. Both Intel and Amazon reported misses on earnings expectations, with significant stock drops in after-hours trading due to weak guidance and commentary.
This tech sell-off occurred even as Q3 US GDP growth exceeded expectations and September PCE inflation remained in line with projections. Elsewhere, oil prices saw a recovery amidst uncertainty regarding US military campaigns, with Brent crude hovering around $115 a barrel.
