Amazon.com Inc. fell 9.1% in premarket trading as rising costs hurt first-quarter results and the e-commerce giant issued a disappointing current-quarter outlook.
Apple Inc, the world’s most valuable company, fell 2.6% as a gloomy demand outlook clipped record fiscal second-quarter profits and sales.
Other megacaps such as Microsoft Corp, Meta Platforms, Alphabet Inc fell between 0.1% and 1%.
Despite a strong rebound on Thursday, helped by strong results from Meta Platforms Inc, the Nasdaq was poised for its worst monthly fall since March 2020, down 9.5% so far.
Investors have shunned high-growth stocks this year for fear that rising interest rates will eat into future earnings. The Federal Reserve is due to meet next week and a 50 basis point rate hike is virtually certain due to rising inflation.
Concerns over aggressive monetary policy, the war in Ukraine and COVID lockdowns in China fueled fears of slowing economic growth. Thursday’s data showed that the US economy contracted unexpectedly in the first quarter.
Readings on personal consumption spending, the Fed’s preferred gauge for inflation and consumer sentiment, are due later in the day.
As of 7:01 a.m. ET, Dow e-minis were down 158 points, or 0.47%, S&P 500 e-minis were down 36.75 points, or 0.86%, and Nasdaq 100 minis were down 150.25 points, or 1.12%.
Earnings season has been better than expected so far. Nearly half of the S&P 500 companies have published their results until Thursday and 81% of them exceeded Wall Exchange expectations. Usually, only 66% beat the estimates, according to Refinitiv data.
Chevron Corp slid 0.5% even though its first-quarter profit easily beat Wall Exchange forecasts as oil and gas prices surged after Russia invaded Ukraine.
Exxon Mobil Corp fell 0.8% as it suffered a $3.4 billion writedown due to its withdrawal from Russia, but doubled its quarterly earnings per share.