U.S. stock futures fell on Tuesday night after disappointing third-quarter results from Alphabet marked a heady start to Big Tech earnings this week.
Dow Jones Industrial Average futures fell 75 points, or 0.24%. S&P 500 and Nasdaq 100 futures fell 0.96% and 2.04%, respectively.
Shares of Google parent Alphabet fell more than 6% in extended trading. The online search giant missed expectations on the top and bottom lines. Alphabet also reported a decline in YouTube ad revenue, prompting investors to weigh the outlook for other tech companies that rely on ad spending.
“I think we have to take a big perspective and recognize that nobody is really immune in this market, there is a slowdown in digital ad spending,” Brenda Vingiello of Sand Hill Global Advisors said Tuesday on CNBC’s “Closing Bell: Overtime.”
Other mega-cap tech stocks fell in after-hours trading on the back of the report. Shares of Meta Platforms fell 4.1%, and Amazon fell 2%.
Meanwhile, Microsoft fell around 3% after the tech giant reported weaker-than-expected cloud revenue in its latest quarterly results, despite better revenue and revenue estimates.
During the regular session on Tuesday, the Dow Jones Industrial Average rose 337 points, or about 1.1%. The S&P 500 rose 1.6 percent, while the Nasdaq Composite jumped 2.2 percent. Those gains, on the back of a drop in bond yields, helped the major averages extend their rally for a third straight day.
Traders expect quarterly results from Boeing and Kraft Heinz on Tuesday before the hour, as well as more Big Tech earnings from Meta after the hour.
They also look for the latest economic data on weekly mortgage applications, wholesale inventories and new home sales.