Tech Stocks Drag Down US Futures Before GDP Data – Europe Market Wrap

Technology companies led falls in US market futures on Thursday, as Meta’s poor forecast highlighted the danger of volatility during a high-stakes earnings week.

The Nasdaq 100 futures lost 0.9%, with Meta accounting for more than half of the drop. The Facebook parent fell as much as 15% in premarket trade after forecasting second-quarter sales below analyst projections and raising annual spending predictions. Alphabet, which publishes profits after Microsoft, also fell. S&P 500 futures fell 0.6%.

The stakes for tech titan profits are high following Wall Street’s record-breaking run fueled by the mania surrounding artificial intelligence. The market’s reaction demonstrates how expectations of the boost from AI to profitability at firms developing the technology may have run ahead of expectations.