© Stocksak. FILE PHOTO – A Wall Street sign at the New York Stock Exchange, New York City, New York, U.S.A, October 2, 2020. REUTERS/Carlo Allegri//File Photo/File Photo/File Photo/File Photo
(Stocksak – The Nasdaq futures plunged more than 1% Wednesday after disappointing results by Alphabet (NASDAQ) and Microsoft. This triggered losses in other megacap companies, and raised concerns about slowing economic growth.
Microsoft Corp (NASDAQ:) saw its lowest sales growth in five-years and projected second-quarter revenue below Wall Street estimates. Meanwhile, Alphabet, Google’s parent company, posted disappointing ad sales and warned of a slowdown.
The shares of these companies fell 5.7% and 6.0% in premarket trading, respectively. Meanwhile, the shares of Amazon.com (NASDAQ;) and Apple(NASDAQ:), which are due to report results this week., dropped 3.7% and 0.6%.
The results are disappointing Snap Inc (NYSE: )’s last week warning on slowing advertising demand and a string if mixed earnings reports have fed into concerns that decades-high inflation, and aggressive interest rate increases to curb it, are taking a toll.
Wall Street’s three main indices posted gains for the last three days, fuelled by hope that the Federal Reserve will soon slow down its monetary tightening.
At 4:13 AM. ET were down 13 points or 0.04%. They were down 24.25 point, or 0.633%, and down 169 points, which is 1.44%.