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NASDAQ futures moved lower in early morning trading on Friday, following a disappointing earnings report from Netflix, building on the major averages’ declines that dragged it into correction territory.
Futures for the Dow Jones Industrials slumped 112 points, or 0.3%, to 34,504.
Futures for the S&P 500 caved 27.25 points, or 0.6%, to 4,447.50.
Futures for the NASDAQ cratered 142.75 points, or 1%, to 14,698.25.
Netflix’s disappointing quarterly report is the latest setback for technology investors. Shares of the streaming giant tumbled 19% in pre-market trading Friday after the company’s fourth-quarter earnings report showed a slowdown in subscriber growth. Its competitors shares also declined, with Dow component Disney, which operates the Disney+ streaming service, off 3.5% pre-market.
Netflix is the first major tech stock to report earnings this season, with Apple and Tesla slated to post earnings next week.
Peloton, meanwhile, plunged 23.9% during regular trading on Thursday after reports that the company is temporarily halting production of its fitness products. However, the maker of interactive fitness bicycles and treadmills saw shares rebound 5% in Friday’s pre-market.
The major losses in growth names have pushed the NASDAQ Composite further in correction territory as rising rates pressure technology stocks and future profits begin to look less attractive. At Thursday’s close, the NASDAQ was down 11.9% from its closing record in November.
The NASDAQ is headed for its worst week since Oct. 2020 due to a surge in interest rates this week. The U.S. 10-year Treasury hit 1.9% on Wednesday as investors focused on the Federal Reserve’s timeline for raising interest rates and broadly tightening monetary policy. However, bond yields retreated on Friday.
Overseas, in Japan, the Nikkei 225 faltered 0.9% Thursday while the Hang Seng in Hong Kong eked up 0.1%.
Oil prices moved downward $1.13 to $84.42 U.S. a barrel.
Gold prices balked $6.50 to $1,836.10 U.S. an ounce.
