U.S. stock index futures weakened before the market opened on Thursday, with global stock markets ending a three-day winning streak as disappointing earnings forecasts from Facebook and Instagram owner Meta weighed on technology stocks.
As of press time, Dow futures fell 0.5%, S&P 500 futures fell 0.6%, and Nasdaq futures fell 0.9%.
Germany\’s DAX index fell 0.4%, France\’s CAC 40 index fell 0.5%, Britain\’s FTSE 100 index rose 1.1%, and Europe\’s Stoxx 50 index fell 0.6%.
WTI crude oil rose 0.19% to US$82.97 per barrel.
Brent crude oil rose 0.22% to US$88.21 per barrel.
U.S. first-quarter GDP data and more financial reports from \”big tech companies\” are scheduled to be released later today, but for now, Meta\’s stock price fell 15% due to thunderous results, causing market sentiment to worsen.
Risks are high for tech giants\’ earnings after frenzy around artificial intelligence fueled a record-breaking rally on Wall Street.
The market reaction suggests that expectations for a boost to profits from artificial intelligence for companies developing the technology may be exceeded.
Robert Alster, chief investment officer at Close Brothers Asset Management, added that Zuckerberg\’s comments about Meta needing to invest money to keep up with the artificial intelligence arms race were another major factor.
\”I think we just got a little reality check,\” said Sonja Laud, chief investment officer at Legal & General Investment Management. \”It doesn\’t take away the excitement about future potential, but it may put valuations back on a more realistic track. superior.
\”The market focuses on U.S. GDP.
In addition to earnings reports, traders are also eagerly awaiting U.S. economic growth data due later.
Investors will focus on first-quarter U.S. gross domestic product (GDP) data due later.
For weeks, they had been lowering their expectations for a rate cut from the Fed.
Economists surveyed expect U.S. GDP to fall to about 2.5% in the first quarter, and the data may still indicate continued inflationary pressures.
“Any downside surprise could push markets to embrace expected Fed rate cuts sooner – which have been delayed a lot this year,” said economists at Rand Merchant Bank in Johannesburg. “However, as markets try to identify stronger The risks the economy poses to expected rate cuts, and upside surprises could lead to continued market volatility.
\”Recent higher-than-expected inflation reports have delayed and reduced expectations for a rate cut by the Federal Reserve, with the market now pricing in about a 70% chance of a first rate cut by the Fed in September.
They don\’t even fully believe there will be another rate cut this year, and they expect about six rate cuts early this year.
Is it time to withdraw? Strategists warn that U.S. stocks may plummet 44%.
Recently, Paul Dietrich, chief investment strategist at B. Riley Wealth Management, warned that U.S. stocks could face a plunge of up to 44% and suggested that investors could benefit from withdrawing from the market early.
He recalled that during the economic peaks of 2000 and 2007, he advised clients to switch from stocks to bonds, cash and gold. Although this caused them to miss the stock market rise in the following year, they avoided the dot-com bubble and the housing bubble. A serious blow.
During the 2000-2002 recession, his clients netted 7% before fees, even as the S&P 500 fell 49% and the Nasdaq fell 78%.
Dietrich emphasized, “The current carnival-like bubble in the stock market, while full of fun and excitement, is completely divorced from the fundamentals of stocks.
\”The demand for two-year and five-year U.S. debt auctions is acceptable. Will the U.S. debt market reach a turning point? The U.S. Treasury Department has auctioned a total of approximately US$140 billion in Treasury bonds in the past two days.
Specifically, the U.S. Treasury Department auctioned $69 billion of two-year U.S. Treasury bonds on Tuesday, and the winning bid rate was 4.898%, slightly lower than the pre-auction expectation of 4.904%, indicating that the auction was more popular than expected.
In addition, the U.S. Treasury Department also auctioned $70 billion of five-year U.S. Treasury bonds on Wednesday. The auction size increased by $3 billion from the $67 billion last month and was the highest amount on record for U.S. bonds of this maturity.
The winning bid rate for this auction was 4.659%, a sharp increase from 4.235% last month and slightly higher than the expected yield before the auction, indicating that demand was not strong.
The U.S. Treasury Department will also auction $44 billion of seven-year U.S. Treasury bonds on Thursday.
Focus stock Meta fell more than 14.5% before the market opened. Second-quarter revenue guidance was lower than expected, and it raised its full-year capital expenditure forecast.
IBM fell more than 8.5% before the market opened, and its consulting business performed weakly in the first quarter.
Nordisk fell 1.1% in pre-market trading as the U.S. Senate launched an investigation into the pricing of Novo Nordisk\’s GLP-1 drug.
BHP Billiton fell 3% before the market opened, bidding 31.1 billion pounds to acquire Anglo American Resources.
Barclays rose 5.2% before the market opened and said it planned to return at least 10 billion pounds to shareholders over the next three years.
Teradyne rose more than 8% before the market opened, and its Q2 performance guidance exceeded expectations.
Ford Motor Co. rose 2.7% before the market opened. Its Q1 performance exceeded expectations and it adjusted its strategy to produce more SUVs and pickup trucks.
Unilever rose 5.2% before the market opened, with Q1 revenue of 15 billion euros exceeding expectations.
AstraZeneca rose nearly 6% before the market opened, with Q1 results exceeding expectations.
Indivior fell nearly 5% before the market opened, and its Q1 performance fell short of expectations.
Align Technology rose nearly 5% before the market opened, and its Q1 performance exceeded expectations.
Celestica rose 5.8% before the market opened. Its Q1 performance exceeded expectations and it raised its full-year guidance.
Cidara Therapeutics rose more than 30% before the market opened, selling assets to adjust strategic focus.
