Dow Jones, S&P500 and NASDAQ end in red as tech stocks rout continues; Amazon shares fall 10% on mixed earnings in extended session

The tech stocks continued to rattle the US markets for the third consecutive session, with NASDAQ closing nearly 1.4% lower on Thursday. The S&P500 and Dow Jones also fell 1.2% each on Thursday as investors turned cautious over the broader economic sentiment of the country.

Additionally, the macroeconomic data for employment also disappointed the markets. The US Job openings fell to their lowest level since 2020, and the jobless claims rose more than expected as employers announced the largest job cuts since 2009.

Amazon results

The largest online retailer and web services platform posted a mixed set of earnings on Thursday. The company’s revenue stood at $213 billion, slightly higher than the consensus estimates of $211 billion for the quarter. Additionally, the earnings per share for the company jumped from $1.93 per share to 1.95 per share, but slightly lower than the consensus street estimates of $1.97 per share. While the AWS segment posted a better-than-expected outcome at $35.6 billion

The shares dropped nearly 10% in the extended trading session after market hours as the company’s announcement of a $200 billion investment in AI and related expenditure soured investor sentiments.

The trend remains the same across megacap companies, which are pushing massive spending on AI infrastructure but receiving muted, subdued responses from investors. The disappointment with heavy spending on AI infrastructure is primarily due to its low investment yields.

Shares of Microstrategy (MSTR) slipped another 1% after the company reported a $17.4 billion operating loss in the quarter, largely driven by mounting losses in digital assets.

Meanwhile, the gold and silver prices continued to drop further after an initial recovery on Thursday morning. The gold prices traded mixed on Friday morning at $4,811 per ounce, while the silver prices slid 9% on Friday to $64.1 per ounce