Stock index futures pointed to a lower open on Wednesday amid a slowdown in technology after Microsoft expressed concern about the outlook for the highs.
Nasdaq Futures (NDX:IND) -1.2% were the weakest, with S&P futures (SPX) -0.8% and Dow futures (INDU) -0.7% also in the red.
Microsoft ( MSFT ) fell 2% premarket, reversing a post-earnings rally after CFO Amy Hood said on a conference call that “moderate spending growth” in the cloud business was likely to extend into the current fiscal third quarter. MSFT set quarterly revenue of $50.5 billion to $51.5 billion, about $1 billion short of the Wall Street consensus.
Cloud caution backfired on Amazon ( AMZN ), which fell 2% before the bell. Also in megacap land, Tesla ( TSLA ) reports its earnings after the bell today.
Prices were lower. The 10-year ( US10Y ) yield fell 3 basis points to 3.43%, and the 2-year ( US2Y ) yield fell 6 basis points to 4.15%.
“Over the past 24 hours, there has been a slight bias towards risk-off sentiment, thanks in part to some weaker-than-expected earnings announcements that have added to concerns about a potential US recession,” wrote Deutsche Bank’s Jim Reid.
The economic calendar is fairly empty, with traders set to position GDP on Thursday.
Among other active stocks, News Corp. ( NWS ) is rising after Rupert Murdoch abandoned his plan to remerge Fox and News Corp.