Tech stocks retreated on Friday in the wake of disappointing results from Apple (AAPL), as investors waited for the monthly US jobs report that could test hopes that the Federal Reserve is done with its rate-hiking campaign.
Futures on the tech-heavy Nasdaq 100 (^NDX) dropped around 0.4%, while S&P 500 (^GSPC) futures slipped about 0.1%. Dow Jones Industrial Average (^DJI) futures were also muted, hovering above the flatline after closing more than 500 points higher as stocks made sizable gains on Thursday.
While Apple’s earnings beat estimates in its quarterly report after the bell, the iPhone maker was cautious in its outlook for growth, saying it expects sales of iPads, Macs and wearables to “decelerate significantly.”
While investors weigh what that could mean about the resilience of consumers — and whether the series of disappointing earnings this season might feed into the Fed’s assessment of how its tightening is dampening the economy — attention is turning to the October jobs report release.
Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards
The health of the labor market is a key input for Fed policymakers, and the reading will be watched for any reason to dash current hopes that the central bank will hold off from raising rates again this year. The nonfarm payrolls report is expected to show the US economy added 180,000 jobs, a slowdown in growth.
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KTech stocks struggle with focus on Apple, jobs report
Tech stocks slipped amid muted trading on the major US stock gauges as investors assessed Apple’s cautious sales outlook and waited for the October US jobs report.
Futures on the tech-heavy Nasdaq 100 (^NDX) fell 0.19%, while S&P 500 (^GSPC) futures dropped 0.06%. Contracts on the Dow Jones Industrial Average (^DJI) were down 0.03%, or 29 points.
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