Equity Markets Take Hit as Nasdaq Futures Slip Over Underwhelming Earnings Reports
The recent earnings missteps from large U.S. tech companies have put traders on notice: re-evaluate the stock market’s sky-high valuations. The Nasdaq 100 has been largely immune to the current pessimism; yet it is at risk of larger losses as a wider selloff takes over equity markets.
NASDAQ Index Futures Lose 1%
The rout began when Nasdaq index futures dropped 1% after investors punished companies reporting weaker-than-expected earnings. Meta Inc. tumbled 4% in U.S. pre-market trading after an uncertain economic climate. Google’s parent Alphabet Inc. also fell 2.3% due to disappointing cloud figures. Not to be outdone, Amazon.com Inc. slipped 1.5%, and will report its results after the bell.
European & Asian Equities Record Steep Losses
The bearish sentiment carried over to other markets, with European and Asian equities recording severe drops. The strengthening of the U.S. dollar and gold increasing 0.5% may be signs of further market plunge. Japan’s yen also sank again past 150 per dollar, signaling government intervention in currency trading.
BNP Paribas Investment Advisor Reponds
Investment advisor Paul de La Baume of BNP Paribas Suisse SA stated, “Investors are selling beforehand out of fear that sentiment will get worse before it gets better.”
Important Economic News of the Week
Important economic news of the week inlcudes the European Central Bank’s (ECB) interest rate decision. President Christine Lagarde will host a press conference on the topic, while U.S.Secondly, wholesale inventories, GDP, durable goods, initial jobless claims, pending home sales, Intel and Amazon’s earnings, China’s industrial profits, Japan’s Tokyo CPI, the PCE deflator, personal spending and income, and the University of Michigan’s consumer sentiment data will be released. Lastly, Exxon Mobil earnings will conclude the week’s data-heavy news.