Nasdaq 100 and S&P 500: Futures Drop as Alphabet, AMD, and Apple Weigh on Markets

Tech Stocks Weigh on Futures as Alphabet and AMD Slide After Earnings

Stock futures slipped Wednesday as disappointing earnings reports from Alphabet and AMD pressured the tech sector. Apple also added to the downturn amid regulatory concerns in China.

S&P 500 futures fell 0.4%, while Nasdaq 100 futures dropped 0.8%. Dow Jones Industrial Average futures edged lower by 39 points, or 0.1%. The tech-heavy Nasdaq bore the brunt of the selling, driven by post-earnings declines in major companies.

Why Did Alphabet and AMD Fall?

Alphabet shares tumbled 7% after the Google-parent posted weaker-than-expected cloud revenue. The company’s aggressive investment in artificial intelligence raised concerns about increased spending, leading investors to question its near-term profitability. Overall revenue for the quarter also fell short of expectations.

AMD also slumped, dropping 8%, as its fourth-quarter data center revenue missed estimates. The shortfall cast doubt on the company’s ability to capitalize on the booming demand for AI-related chips, especially as competition with Nvidia intensifies.

The Technology Select Sector SPDR Fund (XLK) fell 0.6% in premarket trading, reflecting the broad weakness in tech stocks.

Apple Faces Regulatory Pressure in China

Apple shares slid 2.7% after reports surfaced that Chinese regulators may launch a formal investigation into the company’s App Store fees and policies. The news comes at a time of escalating U.S.-China trade tensions, with both countries imposing fresh tariffs.

The prospect of regulatory action in China, one of Apple’s largest markets, added to investor anxiety. Any potential crackdown could impact Apple’s service revenue, a critical driver of its long-term growth strategy.

Uber and Disney Deliver Mixed Results

Uber’s fourth-quarter earnings topped revenue expectations, but the stock fell 7% after the company issued softer-than-expected guidance. While Uber’s gross bookings grew 20% year-over-year, its forecast for the first quarter came in below Wall Street estimates.

Disney, meanwhile, posted better-than-expected earnings and revenue but reported a slight decline in Disney+ subscribers. The company warned of another modest subscriber loss next quarter, despite improving profitability in its streaming business. Disney shares wavered in premarket trading.

What’s Next for the Market?

Investors will be closely watching upcoming economic data, including jobless claims and consumer sentiment reports, for further clues on the Federal Reserve’s rate path. With tech stocks under pressure, traders will look for signs of stabilization, particularly in the AI and semiconductor space.

Earnings season continues, with key reports from major companies set to influence market sentiment in the coming days. While the S&P 500 and Nasdaq posted gains in the prior session, today’s sell-off in tech suggests traders remain cautious as valuations adjust to shifting growth expectations.

More Information in our Economic Calendar.