Stock futures fell on Friday as investors weighed more corporate earnings reports and higher U.S. bond yields.
Nasdaq 100 futures fell 0.8%, while futures linked to the Dow Jones Industrial Average lost 111 points, or 0.4%. S&P 500 futures fell 0.5%.
Snap reported quarterly revenue of $1.13 billion, below expectations. This revenue represents a year-on-year growth of only 6%. Average revenue per user, a key metric for the company, fell 11% to $3.11.
“The mood is pretty gloomy with stocks on sale pretty much everywhere. The culprit for the negativity is earnings with a bunch of disappointments around the world,” wrote Vital Knowledge’s Adam Crisafulli.
Shares in Meta Platforms fell nearly 4% in premarket trading, while Alphabet fell 1.8%.
The moves come after the indexes fell for a second day, with the Dow losing 90.22 points, or 0.3%. The S&P 500 and Nasdaq Composite were down 0.8% and 0.6%, respectively.
It was a day that started on a brighter note for the Dow, which rose nearly 400 points to session highs, but rising Treasury yields caused stocks to cool. The 10-year Treasury yield is trading at levels not seen since 2008. On Friday it was trading at around 4.26%.
Thursday’s trading fits a broader picture of jittery investors making knee-jerk decisions based on the day’s news, said Jamie Cox, managing partner at Harris Financial Group. He said investors are increasingly moving toward short-term strategies as they see the Federal Reserve creating a volatile market as it seeks to reduce inflation through interest rate hikes.
“The markets are looking for any sign that the inflation data is moving in such a way that the Fed can cut its pace of interest rates and they basically ignore the speakers and the governors and basically ignore everything they say the Fed,” Cox said.
“It lends itself to very, very choppy trading because people are happy and just waiting for the signal that the break is coming,” he said. “It’s a bad way to trade and it brings a lot of volatility.”