Tech’s Big Day Tarnished as Microsoft, Google, TI Disappoint
US tech stocks tumbled in after-hours trading after some of the industry’s biggest companies reported disappointing results, roiling wagers that this year’s $5.5 trillion selloff had reached bottom. The quarterly updates from Microsoft Corp., Alphabet Inc. and Texas Instruments Inc. underscored growing pressure on everything from corporate IT budgets to digital ad spending and chips for industrial machinery. Nasdaq 100 Index futures lost as much as 2.4%, reversing an earlier rally on Tuesday, as the results refocused investor attention on the damage to earnings and the economy from the Federal Reserve’s rapid interest-rate hikes.
The selloff in extended to other consumer and tech giants, with Amazon.com Inc. dropping 4.9% in late trading. Those that derive sales from online advertising followed Alphabet lower, with Meta Platforms Inc. and Pinterest Inc. dropping more than 4% each. Among software companies moving in the wake of Microsoft, Datadog Inc. tumbled 7%, Snowflake Inc. fell 5% and Salesforce Inc. dropped 3%. The Nasdaq 100 Index has plunged more than 28% this year, on course for its worst annual performance since 2008.
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