Nasdaq futures fall more than 1% after Microsoft’s gloomy forecast

Jan 25 (Reuters) – U.S. stock index futures fell more than 1% on Wednesday, led by Nasdaq, after Microsoft’s cloud services division’s earnings forecast came in below Wall Street’s estimates.

Shares of Microsoft Corp fell 2.1% in over-the-counter trading after the company warned that cloud sales growth, which helped it beat analysts’ expectations in the second quarter, could stall as the company’s PC division continues to struggle. keeps.

Other big growth stocks including Amazon.com Inc, Tesla Inc, Apple Inc and Alphabet Inc were also down in the 1%-2% range.

Growth stocks rallied in January after last year’s losses, but investors are now turning their attention to corporate quarterly reports to gauge the impact of the Federal Reserve’s rate hikes and see if there are new bulls for these stocks. The enthusiasm will continue from the end.

“Microsoft is dealing with a marked deceleration in personal computer revenue growth, reflecting an incredibly challenging consumer environment,” Sophie Lund-Yates of Hargreaves Lansdown wrote in a client note. “Despite resurgent expectations that interest rate hikes may be slowing and inflation peaking, buying a new laptop and the software that comes with it isn’t a priority for many people right now.”

Microsoft also experienced a technical glitch that disrupted the Azure cloud platform as well as services such as Teams and Outlook, potentially affecting millions of users around the world.

Futures on the Dow were down 0.68% by 16:15 Moscow time, the S&P 500 fell 0.85%, the Nasdaq 100 fell 1.31%.

The original message in English is available on the code: (Translated by Shreyashi Sanyal in Bangalore, Radosław Jazga)

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