Stock futures were in the red in the early morning hours of Friday, as investors arrived at the end of a power-packed big-tech earnings week with dismal earnings from Amazon (AMZN) and Apple (AAPL).
Futures on the Dow Jones Industrial Average (DJIA) were down 0.48%, while those on the S&P 500 (SPX) moved 0.85% lower, as of 6.29 a.m. EST, Friday. Meanwhile, the Nasdaq 100 (NDX) futures dropped 1.15%.
In Thursday’s extended trading session, shares of Amazon shook off 9% after its investment in Rivian (RIVN) garnered unexpected losses. Moreover, its lackluster guidance for the second quarter was also a deal-breaker.
Apple, whose earnings beat led to a rally in share prices, fell more than 2% in the extended trading hours on Thursday. The move came after the CEO, Luca Maestri, warned of top-line pressures, stemming from persistent supply-chain constraints, impacting the fiscal third quarter.
The extended trading session of Thursday also saw the Intel (INTC) stock tumble more than 3% on the back of tepid fiscal second-quarter guidance. Moreover, Robinhood (HOOD) reported a wider-than-expected loss, revenue headwinds, and a decline in monthly active users, making its shares nosedive more than 11% in the after-hours trading session.
Now that one of the busiest earnings weeks is almost over, investors’ concerns are shifting back to a possible recession, inflation, and the Federal Reserve’s interest rate hikes.
In its report released on Thursday, the Commerce Department highlighted an unexpected shrinkage in the gross domestic product in Q1. The GDP for Q1 was 1.4% lower year-over-year, as opposed to the 1% growth that economists had expected.
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