By Callum Keown
So much for the tech-stock rebound.
Disappointing corporate earnings -- most notably the reaction to Meta Platforms' results -- and weaker-than-expected U.S. economic growth data, are putting the sector under pressure early Thursday.
The technology-heavy Nasdaq Composite Index fell 1.9% in early trading Thursday after edging 0.1% higher Wednesday. That was the index's third consecutive day of gains after a six-day losing streak. The short-lived winning run may well come to an end Thursday.
Meta stock, which fell 13.9% shortly after the open, was the worst performer in the S&P 500. The Facebook and Instagram parent's June-quarter guidance missed expectations and the company unveiled plans to ramp up artificial intelligence spending, which seems to be spooking investors.
The sharp drop precipitated declines for other members of the so-called Magnificent 7. Alphabet fell 3.8% and Microsoft was 4.7% down -- both companies are due to report earnings after the close. Amazon stock was 3.3% lower, while Nvidia rose 1.5%, and Apple edged higher.
Other social-media platforms tied to online advertising were also lower -- Snap fell 3.5% and Pinterest declined 3.9%.
International Business Machines added to the souring sentiment in the sector as its shares tumbled 8.7%. IBM's first-quarter revenue missed expectations and the tech giant said it has reached an agreement to buy cloud-software company HashiCorp in a $6.4 billion deal.
The chip sector was more mixed, though, with modest gains for Intel, which reports earnings later in the day. and Micron Technology was lower and Advanced Micro Devices was flat.
Super Micro Computer, which makes AI servers, was 0.8% lower as its recovery from Friday's 23% slump looked set to stall, while SoFi Technologies and Palantir Technologies also fell.
Write to Callum Keown at callum.keown@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
April 25, 2024 10:00 ET (14:00 GMT)
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