Tech Stocks Drag Futures: Amazon and Intel Weigh on Market Outlook

U.S. stock futures declined on Friday, driven by sharp drops in technology shares and a major security breach at a leading cryptocurrency exchange.

Futures for the S&P 500 slipped by 1% during the session. Contracts for the Nasdaq Composite fell by 2.3%, while the Dow Jones Industrial Average held steady. The weakness in tech stocks followed a turbulent Thursday for Alphabet, whose Class A shares lost more than 12%. That decline marked the worst single-day drop for the company since it began trading more than two decades ago. Investors reacted to summer growth figures that lagged analyst projections. The company faces scrutiny over its spending on artificial intelligence development. Its shares edged lower in premarket trading on Friday.

Amazon offered a cautious outlook for its fourth quarter, a period that includes the critical holiday shopping season. The company’s fiscal third-quarter results came in below Wall Street expectations. Amazon shares fell nearly 7% before the market opened on Friday. Intel reported a softer-than-anticipated forecast for the same quarter, citing persistent weakness in the personal computer market. Intel stock slumped by more than 25% in premarket trading. These moves reflect ongoing volatility in AI-related sectors, where stocks have swung between gains driven by enthusiasm for the technology and losses tied to supply constraints.

Bitcoin dropped by approximately 3% to $77,695 after Binance confirmed a hack that cost $6.36 billion. The exchange temporarily suspended withdrawals and deposits in response to the breach. In energy markets, benchmark U.S. crude oil rose by 2.1% to $104.13 per barrel. Brent crude, the international standard, climbed by 2.5% to $113.51 per barrel. Brent prices remain near the high end of their range since the war with Iran began. The most actively traded contract for Brent crude reached nearly $120 in March, which stands as the peak price since the conflict started.

The British military reported that a tanker caught fire after a small boat attached two explosives to its hull while transiting the Strait of Hormuz. The incident temporarily disabled the vessel. Iran’s Revolutionary Guard stated on Thursday that three oil tankers struck mines while attempting to leave the strait via an unauthorized route. The UK Maritime Trade Operations, or UKMTO, noted in a report that October has become the busiest month for reported attacks on shipping in the strait since March. March marked the opening months of the Iran war.

European indices showed mixed results, with France’s CAC 40 gaining 0.1% to close at 7,981.42. The German DAX fell by 0.6% to 25,895.24, while Britain’s FTSE 100 added 0.3% to 10,725.66. Asian markets mostly trended lower throughout the day.