US stock futures fell sharply on Friday as steep declines in major technology companies put pressure on Wall Street. Futures linked to the S&P 500 dropped 1%, while Nasdaq-100 futures fell 2.3%; Dow futures were unchanged.
Amazon, Intel and Alphabet were among the biggest fallers before trading began, adding to concerns about the outlook for technology stocks and the heavy spending associated with artificial intelligence.
Amazon shares dropped nearly 7% in pre-market trading after the company issued a cautious sales forecast for the fourth quarter, which includes the crucial holiday shopping period. Its third-quarter results also fell short of analysts’ expectations.
Intel suffered an even sharper decline, with its shares down more than 25% before the opening bell. The chipmaker gave a weaker-than-expected outlook for the fourth quarter amid continuing weakness in the personal computer market.
Alphabet’s Class A shares slipped slightly in pre-market trading after plunging more than 12% on Thursday. The company behind Google and YouTube reported weaker summer growth than analysts had expected, marking its worst trading day since the shares began trading more than two decades ago.
Alphabet has also faced pressure over the scale of its investment in artificial intelligence. AI-related stocks have been volatile, rising on enthusiasm about the technology before falling amid concerns including supply constraints.
Bitcoin fell about 3% to 77,695 dollars after a 6.36 billion-dollar hack at cryptocurrency exchange Binance. Binance temporarily suspended withdrawals and deposits.
Oil prices moved higher as tensions around shipping in the Strait of Hormuz continued. US crude rose 2.1% to 104.13 dollars a barrel, while Brent crude, the international benchmark, gained 2.5% to 113.51 dollars.
The British military said a tanker caught fire after a small boat attached two explosives to its hull while the vessel was travelling through the strait, temporarily disabling it. Iran’s Revolutionary Guard said on Thursday that three oil tankers had struck mines while trying to leave through an unauthorised route.
European markets were mixed, with France’s CAC 40 up 0.1%, Germany’s DAX down 0.6% and the FTSE 100 0.3% higher. Asian markets were mostly lower.
