Big tech disappoints, Nasdaq futures slip

investmentnews.com:

A slide in tech behemoths soured the mood Thursday, while the escalating conflict over Ukrainian grain exports prompted traders to temper relief over easing inflation.

Futures on the Nasdaq 100 fell 0.8% as investors digested Netflix Inc.’s missed sales estimates and disappointing third-quarter forecast. Tesla Inc. also fell after profitability shrank in the second quarter, a sign the electric-vehicle maker’s margins are being squeezed. 

Anglo American Plc led a recovery in European equities after the precious metals miner’s second quarter beat estimates. European tech stocks including ASML Holding NV slumped after Taiwan Semiconductor Manufacturing Co. cut its outlook. 

At the same time, relief that inflation has been tamed was marred by a spike in commodities on the escalating conflict over Ukrainian grain exports. Wheat prices extended their biggest daily surge in a decade on Wednesday after Russia warned that any ships to Ukraine would be seen as carrying arms.

Uneven consumer spending in the US and China’s economic slump signal the global economy isn’t out of the woods yet after sustaining aggressive central bank tightening. US Treasuries fell, pausing a rally sparked by speculation that the Federal Reserve hiking cycle may have peaked.

“We think returns in Q2 are overdone, given the US is still likely heading for a mild recession,” Aegon Asset Management strategist Cameron McCrimmon wrote in a note. “The breadth of returns on the S&P 500 has become increasingly narrow, driven by a few mega-cap tech stocks on AI optimism, which is a classic sign of an ageing bull.”

He expects central banks to remain hawkish until inflation is back closer to 2% or a deeper-than-expected recession hits.

Meanwhile, the dollar fell