Traders faced a turbulent evening as stock futures posted declines following a disappointing earnings report from Amazon, which sent shares tumbling. The Dow Jones Industrial Average futures fell by 110 points, translating to a 0.2% drop, while S&P 500 futures decreased by 0.5%. The Nasdaq 100 futures saw a steeper decline of 1%.
Amazon’s shares plummeted nearly 10% after the ecommerce giant reported earnings per share that slightly missed analyst expectations. The company also warned investors to brace for $200 billion in capital expenditures over the coming year, contributing to the negative market sentiment. Conversely, shares of Reddit surged over 4% after the social media platform reported stronger-than-expected earnings, provided optimistic guidance, and announced a stock buyback program.
This downturn followed a challenging day on Wall Street, on which technology stocks were particularly affected. The Nasdaq Composite Index suffered a drop of approximately 1.6%, largely driven by Qualcomm’s 8.5% decline in the wake of its earnings release. The software sector, a major component of the tech industry, continued to struggle, exemplified by the iShares Expanded Tech-Software Sector ETF (IGV) which fell another 5%. This ETF has now experienced a decline of over 11% for the week, marking its most significant drop since 2008 as concerns mount over the potential risks artificial intelligence poses to the sector.
The broader market reflected this uncertainty, with the Dow and S&P 500 shedding 1.2% during Thursday’s trading session. The S&P 500 index has now entered negative territory for 2026, joining the Nasdaq, while the Dow remains mostly flat for the week. Both the S&P 500 and Nasdaq have recorded losses of approximately 2% and 4%, respectively, indicating a potential for one of the worst weeks seen since the market rout in early April.
Market analysts have noted an atmosphere of unease among investors. “There’s been a little bit of nerves,” remarked Michael Farr, Chair of FarrCrest Capital, during CNBC’s “Closing Bell: Overtime.” He pointed out that many are on edge, questioning when the market might crack and how long the current trends can persist.
In addition to the stock market struggles, other asset classes also reflected a risk-off sentiment among traders. Notably, Bitcoin experienced a staggering 13% decline, reaching levels not seen since 2024. A sell-off in silver, a commodity that has recently gained popularity among retail investors, also resumed.
Looking ahead, investors will be closely monitoring earnings from Under Armour, expected to be reported before the market opens on Friday. In another update from the Bureau of Labor Statistics, the release of the closely watched nonfarm payroll report, initially anticipated for Friday, has been postponed to next week following the resolution of a government shutdown.
