Business

Futures prices fall after Amazon losses


U.S. stock futures slide, led by declines in the technology sector, after

Amazon.

com announces first quarterly loss in seven years.

S&P 500 index futures fell 0.4% on Friday. Contracts on the technology-focused Nasdaq-100 fell 0.6% and Dow Jones Industrial Average futures were flat. The moves mark a reversal from Thursday, when the technology shared leading profit as investors welcomed a solid earnings report from

Meta . Platform.

That optimism waned after Amazon posted a loss, an outcome that reflects broad economic trends related to a drop in online shopping, higher costs from inflation and supply chain woes. , and market turmoil for electric vehicle startups. Amazon shares fell 8.4% in pre-market trading. The moves of big tech companies can have a big impact on major stock indexes due to their higher weighting relative to other stocks.

Tech stocks have been under pressure this month as expect the rate to increase further from the Federal Reserve attracts investors to bonds and the Shanghai lockdown adds global supply chain disruption. The Nasdaq Composite was down 9.5% this month through the end of Thursday, its biggest one-month percentage drop since March 2020.

Apple

warned on Thursday that the resurgence of Covid-19 in China threaten to impede sales up to $8 billion in the current quarter. Shares fell 2.3% before the market.

“The reality is that a few weeks after this lockdown, we will be back to supply chain disruptions that could have an impact on inflation, and this could put markets at risk,” said Esty Dwek, Chief Investment Officer at FlowBank. Central banks are in a tough spot,” said Esty Dwek, chief investment officer at FlowBank. “We have seen the beginnings of improvements in the supply chain but that could be reversed if these standoffs in China persist any longer.”

March numbers for the Fed’s preferred measure of inflation will be released alongside consumer spending data at 8:30 a.m. ET.

In the bond market, the yield on the benchmark 10-year Treasury note fell to 2.837% from 2.862% on Thursday. Output decreases as price increases.

Brent crude, the international standard for oil, rose 0.8 percent to $108.12 a barrel. From Moscow cut off the gas supply for some countries has traders worried about further disruption as European countries try to move away from Russian energy.

Overseas, the continent-wide Stoxx Europe 600 rose 1.2%, while China’s Shanghai Composite gained 2.4% and Hong Kong’s Hang Seng rose 4%.

Write letter for Caitlin Ostroff at caitlin.ostroff@wsj.com

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