Traders work on the floor of the New York Stock Exchange during afternoon trading on April 09, 2024 in New York City.
Michael M. Santiago | Getty Images
U.S. stock futures fell Thursday after tech juggernaut Meta Platforms reported quarterly results that disappointed investors.
Futures tied to the Dow Jones Industrial Average fell 207 points or 0.5%. S&P 500 futures slid 0.7%, and Nasdaq 100 futures dropped 1%.
Meta plunged 12% in premarket trading after the social media giant issued light revenue guidance for the second quarter. That would be the stock’s biggest one-day decline since October 2022. International Business Machines also fell 8% after missing consensus estimates for first-quarter revenue.
Meta’s report raises concern ahead of other big tech releases. Microsoft and Alphabet are slated to post earnings after the close Thursday.
Traders will watch out for the first-quarter reading of the U.S. gross domestic product, due at 8:30 a.m. ET Thursday. Economists polled by Dow Jones expect that real GDP came in at 2.4%. Weekly jobless claims are also due.
These data points will inform the central bank’s path forward on interest rate policy. Fed funds futures trading suggests the first cut could take place at the September Fed meeting, according to CME FedWatch Tool.
Nevertheless, iCapital chief investment strategist Anastasia Amoroso thinks that earnings look strong enough to boost stocks.
“Even if the Fed does stand pat, I think this could be a supportive environment for stocks,” she said on CNBC’s “Closing Bell” on Wednesday afternoon. “Return expectations for investors have actually improved since the beginning of April.”