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The
Snapchat owner's shares plummeted 29.3% in premarket trading
after the company slashed its second-quarter earnings forecast
and said the economy had worsened faster than expected in the
last month.
Google-owner Alphabet Inc, Twitter Inc, Meta Platforms Inc and
Pinterest Inc, which earn a chunk of their revenue from
advertising, fell between 3.7% and 12.4%.
"Snap's warning has triggered fears that advertising spend has
peaked for now," Russ Mould, investment director at AJ Bell,
said.
"When the (economic) outlook is gloomier, advertising spend is
pared back. This will put investors in a bad mood and create
more storm clouds just at the point when many were hoping the
market slump was close to bottoming out."
Wall Street's main indexes ended sharply higher on Monday in a
broad-based rally led by beaten down banks and Big Tech shares.
The rebound came on the heels of the S&P 500 and the Nasdaq's
longest streak of weekly declines since the dotcom bust in 2001,
on concerns about the impact of persistently high inflation on
the U.S. economy and corporate earnings.
At 06:17 a.m. ET, Dow e-minis were down 227 points, or 0.71%,
S&P 500 e-minis were down 43.25 points, or 1.09%, and Nasdaq 100
e-minis were down 201.75 points, or 1.68%.
Airbnb Inc slipped 2.3% after the vacation rental firm said it
would shut down its domestic business in China from July 30,
joining a long list of Western internet platforms that have
opted out of the China market.
The CBOE volatility index, also known as Wall Street's fear
gauge, rose to 29.39 points.
(Reporting by Devik Jain and Anisha Sircar in Bengaluru; Editing
by Shounak Dasgupta)
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