Amazon, Intel, and Alphabet Drag U.S. Futures Lower Ahead of Open

U.S. stock futures declined on Friday morning as investors reacted to disappointing results from major technology firms and a major security breach at a cryptocurrency exchange. The S&P 500 futures dropped by 1% and Nasdaq futures fell 2.3% before the market opened. Dow Jones Industrial Average futures remained flat.

Alphabet shares, which had fallen more than 12% on Thursday, continued to trade slightly lower in premarket trading. The company behind Google and YouTube reported summer growth that missed analyst forecasts. This marked the worst single-day performance for the stock since it began trading more than 20 years ago. The decline followed concerns over the company's spending on artificial intelligence.

Amazon stock slid nearly 7% in premarket trading. The company provided a cautious sales forecast for the fourth quarter, which includes the holiday shopping season. This guidance followed fiscal third-quarter results that fell short of Wall Street expectations.

Intel shares slumped more than 25% before the market open. The chipmaker issued a softer-than-expected outlook for the fourth quarter, citing continued weakness in the personal computer market. Bitcoin also dropped about 3% to $77,695 after a $6.36 billion hack at Binance. The exchange temporarily suspended withdrawals and deposits following the incident.

Energy markets moved in the opposite direction. Benchmark U.S. crude oil rose 2.1% to $104.13 per barrel. Brent crude, the international standard, climbed 2.5% to $113.51 per barrel. Brent prices remain near the high end of their range since the war with Iran began. The highest price for the most actively traded Brent contract since the conflict started was nearly $120 in March.

The British military reported that a tanker caught fire after a small boat attached two explosives to its hull in the Strait of Hormuz. The incident temporarily disabled the vessel. Iran’s Revolutionary Guard stated on Thursday that three oil tankers had struck mines while leaving the strait via an unauthorized route. The UK Maritime Trade Operations said October is the busiest month for reported shipping attacks in the strait since March.

European markets showed mixed results on Friday. France’s CAC 40 gained 0.1% to 7,981.42, and Britain’s FTSE 100 added 0.3% to 10,725.66. Germany’s DAX fell 0.6% to 25,895.24. Asian markets were mostly lower.