Wall Street is expected to open in the red as technology stocks come under pressure after Alphabet missed earnings estimates. The NASDAQ 100 futures dropped nearly 1% overnight and continued to fall on Thursday morning. Similarly, Dow Jones futures declined by 140 points by 5:00 pm. This market movement follows the release of key economic data showing that the US economy is projected to grow 3.2% in the third quarter, the fastest pace this year.
- NASDAQ 100 futures fell nearly 1% overnight and continued losses Thursday morning.
- Dow Jones futures dropped 140 points by late Thursday afternoon.
- US economy expected to grow 3.2% in Q3, up from 2.2% in Q2.
- Amazon, Intel, and Mastercard are scheduled to report earnings today.
- Federal Reserve’s inflation gauge (PCE) expected to rise 0.5% month-over-month.
Why Are Tech Stocks Falling on Wall Street?
Tech stocks are falling primarily because Alphabet, a major technology company, reported earnings that did not meet market expectations. This has caused investors to become cautious about the sector. Additionally, concerns about rising investments in artificial intelligence (AI) and their impact on companies like Intel have contributed to the negative sentiment.
What Earnings Reports Are Investors Watching Today?
Investors are closely watching the quarterly earnings reports from Amazon, Intel, and Mastercard. Intel is expected to report earnings per share of approximately $0.40. The market is particularly interested in how these companies are performing amid ongoing investments in AI technology and other growth areas.
How Is the US Economy Performing in the Third Quarter?
The US economy is expected to grow at a rate of 3.2% in the third quarter, which is the fastest growth rate seen this year. This follows a 2.2% growth rate in the second quarter. The strong economic performance is supported by robust consumer spending and significant investment in AI, despite interest rates remaining high.
What Are the Inflation Trends in the US?
The Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditures (PCE) index, is expected to increase by 0.5% month-over-month. This would be the largest increase in six months, signaling some inflationary pressures in the economy.
How Are Other Global Markets Performing?
European stock markets mostly traded higher on Thursday. The Euro Stoxx index rose by 0.2%, the UK’s FTSE increased by 0.3%, and Germany’s DAX and France’s CAC 40 both gained 0.8%. However, economic sentiment in the Eurozone declined for the second month in a row, with consumer confidence dropping to its lowest level since May.
In Asia, Japanese markets extended gains for the third straight day, standing out as the only major market with positive results. In contrast, South Korea’s Kospi, Hong Kong’s Hang Seng, and Taiwan’s benchmark index closed lower. These markets remain under pressure due to high energy prices and concerns about supply disruptions linked to tensions in the Middle East.
