Asia markets are set to be under pressure following the overnight tech rout led by Facebook parent Meta Platforms. Meta shares plunged 26% after the company missed earnings and first-quarter guidance. SPI futures are down 1.1%, indicating a drop on the S&P/ASX 200 when the market opens, and the NZX 50 is down 0.8% in the first hour of trade on Friday.
US stocks snapped a four-day winning streak with the Dow Jones Industrial Average sliding 1.5%, the S&P 500 down 2.44%, and the Nasdaq slumping 3.7%. Ten out of the 11 sectors in the S&P 500 closed in the red, with communication services falling 6.52% due to Meta Platforms showing the biggest one-day drop in its history to an 18-month low.
Amazon fell more than 7% before releasing a strong quarterly earnings report that pushed the share price 18% higher in after-hours trading. Snap sank 23% to a 12-month low before its earnings report, but the stocks surged 52% after hours after posting its first quarterly net profit.
The Nasdaq cut losses by 1.7% in after-hours futures market trading.
US jobless claims fell to 238,000 for the week ended 29 January, slightly lower than consensus. The ADP jobs data unexpectedly dropped by 301,000 in January, with the forecast of a 150,000 increase. Non-farm payrolls data is scheduled for release on Friday.
US bond yields rose, with the 10-year US Treasury yield consolidating at 1.82%, and 2-year US Treasury yield trading at 1.88%.
WTI crude oil was up 2.13%, to $US90.14 per barrel, the highest since 2014. Brent crude gained 1.7%, to $US91. The oil price has been soaring amid undersupply and the Ukraine-Russia crisis. Gold bounced off session lows at $US1,788, to close at $US1,806.2.
The US dollar index fell for the fourth straight trading day as the Eurodollar popped on the ECB’s president Christine Lagarde’s comments on inflation. Lagarde said the inflation outlook was tilted to the upside. The Eurodollar was up 135 points, or 1.19%, against the US dollar on the expectation of rate increases by the ECB this year. The US dollar also fell against the pound after the Bank of England raised interest rates by 25 basis points and started to reduce its balance sheet.
Cryptocurrencies were little changed overnight. Falls in tech shares weigh on the digital coin markets.