U.S. stock futures fell on Wednesday after Alphabet’s disappointing third-quarter results and Microsoft’s weak revenue guidance marked an ominous start to the week for big tech earnings.
Dow Jones Industrial Average futures fell 49 points, or 0.2%. S&P 500 and Nasdaq 100 futures fell 0.7% and 1.6%, respectively.
Shares of Google parent Alphabet fell 6% in premarket trading. The online search giant missed expectations on both revenue and profit. Alphabet also reported a drop in YouTube ad revenue, prompting investors to consider the prospects of other tech companies that rely on ad spending.
“I think we have to look at the big picture and recognize that in this market no one is really immune, and digital ad spending is slowing,” Sand Hill Global Advisors’ Brenda Vingiello said on CNBC’s “Closing Bell: Overtime” Tuesday. .”
Against the backdrop of the report, other big tech stocks fell in after-hours trading. Meta Platforms shares fell 4.1%, while Amazon fell 2%.
Meanwhile, Microsoft shares fell about 6% after the tech giant reported weaker-than-expected cloud revenue in its latest quarter, despite topping earnings and revenue estimates. The company also issued lower-than-expected revenue guidance for the current quarter.
Earnings season will continue on Wednesday, with the likes of Boeing, Kraft Heinz and Meta to report.
Traders are also watching for the latest economic data on weekly mortgage applications, wholesale inventories and new home sales.