US equity futures declined Tuesday as a profit warning from Snap Inc. sank technology shares.
Nasdaq 100 futures tumbled 2.32%. Facebook parent Meta Platforms Inc. and other companies that rely on digital advertising plunged after Snap said it’s unlikely to meet revenue and profit forecasts. S&P 500 contracts slid 1.46%. The dollar edged higher, while Treasuries fluctuated.
Equities have been volatile as investors assess the outlook for monetary policy and inflation on the global economy. Minutes on Wednesday of the most recent Federal Reserve rate-setting meeting will give markets insight into the US central bank’s tightening path.
“The contradictory signals pouring into markets from all directions mean we can expect to see plenty of volatility across asset classes in the weeks ahead, even if we don’t get a thematic directional move,” Jeffrey Halley, a senior market analyst at Oanda Asia Pacific, said in a note.
European Central Bank President Christine Lagarde’s prospective timetable for two quarter-point interest-rate hikes has irked colleagues who want to keep open the option of moving faster.
In the U.S., Kansas City Fed President Esther George said she expects the central bank to raise interest rates to 2% by August, with the further course of tightening being guided by how surging inflation cools off.