(Bloomberg) -- Facebook parent Meta Platforms Inc. is fueling losses on Nasdaq 100 futures contracts as it plunges in premarket trading after disappointing results, signaling the return of the technology-stock selloff on Wall Street.
March futures on the tech-heavy index fell as much as 2.4% on Thursday, with the benchmark set to end a four-day rally. A 20% premarket drop for shares of Meta -- the fifth biggest stock in the Nasdaq 100 index, with a weighting of 4.9% -- accounts for roughly half of the losses, according to Bloomberg calculations.
READ: Meta Set for $200 Billion Wipeout, Among Worst in Market History
Meta's shares plummeted after the social network reported that user growth faltered in the latest quarter and gave a disappointing sales forecast for the current period. Spotify Technology SA, meanwhile, also tumbled after forecasting a slower start to the year. The outlooks from both added concerns about technology companies' fundamentals to worries about performance in an environment of rising rates.
“Wall Street's rally is already out of date after dire earnings from Meta Platforms sent U.S. futures markets promptly lower after the close,” Matt Simpson, a senior market analyst at City Index, wrote in a note. “It comes at a time that U.S. indices have continued to climb despite volumes falling.”
READ: Meta Plunges as Facebook Users Stall, Forecast Falls Short
The slump rippled across the market, with other social media stocks including Pinterest Inc. and Snap Inc. also coming under pressure. The Nasdaq 100 is down 7.2% this year despite a recent boost amid positive earnings from companies including Google parent Alphabet Inc.
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