- Stocks finished up in US markets on Thursday night, but the joy looks as if it may be short-lived.
- Tech stocks were way down in premarket trading Friday, with the Nasdaq set to open more than 3% lower.
LONDON – Stocks were sinking, again, in premarket trading early Friday after disappointing earnings reports from the US tech giants Amazon, Google, and Snap weighed on an already gloomy global sentiment in markets.
US stocks have had a rocky “red October,” with catalysts including the US-China trade war, the Federal Reserve raising interest rates, and a spike in bond yields. Those worries eased into a relief rally Thursday, with major US benchmarks all up by at least 1.6%.
But that relief was set to be short-lived upon the ringing of the opening bell in New York on Friday. Amazon, Google, and Snap all posted earnings that spooked investors, sending Amazon’s stock slumping 7.8% in early-morning trading. Google’s parent company, Alphabet, was down 4.3%, and Snap had lost a whopping 13% at about 8:45 a.m. in New York.
Here’s how the markets are faring so far:
- The Nasdaq was set for a lower open, with futures down 3.2% in New York premarket trading. The S&P 500 futures were down 1.5%, and the Dow declined 1%. The VIX “fear index” was up 7%.
- In European trading, the benchmark Euro Stoxx 50 was down 1.1% as of 1:45 p.m. in London; Germany’s DAX lost 1.1%; the UK’s FTSE 100 was down 1%.
- Asian stocks were subdued: Hong Kong’s Hang Seng index slipped 1.1%; the Shanghai Composite closed 0.2%, and the Nikkei was off by 0.4%.
- Oil was falling, with crude down 0.6% to $US76.42 a barrel. Oil and mining companies suffered heavy stock losses in Friday trading. BP, Shell, and Rio Tinto posted declines of 1.6% or more.
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