Tech Woes Continue: Wall Street's Nervous Night
In a tense Thursday evening, stock futures took a dive as Amazon's earnings report sent shockwaves through the market. This latest development adds to the growing concerns on Wall Street, with tech stocks once again at the center of the storm.
CNBC's Adam Jeffery captured the mood at the Nasdaq, where traders were hard at work. Dow Jones futures dipped by 0.2%, S&P 500 futures by 0.5%, and Nasdaq 100 futures by a full 1%.
Amazon's shares tumbled by around 10% after the e-commerce giant's earnings per share fell slightly short of analyst predictions. The company also announced a significant $200 billion in capital expenditures for the year, a move that may have unnerved investors.
But here's where it gets controversial: while Amazon stumbled, Reddit's stock popped by over 4%. The social media platform's strong earnings report, guidance, and a stock buyback program seemed to reassure investors. However, the broader tech sector wasn't so lucky.
The tech-heavy Nasdaq Composite took a hit, dropping roughly 1.6%. Qualcomm's 8.5% post-earnings drop didn't help matters, highlighting the fragility of the sector. Software stocks continued their slide, with the iShares Expanded Tech-Software Sector ETF losing another 5%. This week's decline of over 11% is the fund's biggest weekly drop since 2008, fueled by growing concerns over the impact of artificial intelligence on the sector.
The Dow and S&P 500 also suffered losses of 1.2% each on Thursday, with the Nasdaq joining them in the red for 2026. The Dow remains flat for the week, while the S&P 500 and Nasdaq have slid by approximately 2% and 4%, respectively. The Nasdaq is on track for its worst week since the market turmoil induced by tariffs in early April.
Michael Farr, Chair of FarrCrest Capital, summed up the mood on CNBC's "Closing Bell: Overtime." He said, "There's been a little bit of nerves. People are really on tenterhooks, wondering when the cracks will appear and how long this can last."
The stock market's slide wasn't isolated, with other asset classes also taking a hit. Bitcoin fell by 13%, reaching lows not seen since 2024. The sell-off on silver, a popular trade among retail investors, resumed on Thursday.
And this is the part most people miss: the broader risk-off sentiment among traders. It's not just about individual stocks or sectors; it's a sign of a wider shift in market sentiment.
Investors will now turn their attention to Under Armour's earnings, expected before the bell on Friday. The highly anticipated nonfarm payroll report, initially scheduled for Friday, has been pushed back to next week due to the recent federal government shutdown, according to the Bureau of Labor Statistics.
With stock futures sliding, the market's nerves are fraying. Will the tech sector recover, or is this the beginning of a broader market correction? Only time will tell. What are your thoughts on the matter? Feel free to share your insights and predictions in the comments below!
