Stock futures fall after Alphabet reports earnings miss

U.S. stock futures fell on Tuesday night after disappointing third-quarter results from Alphabet, which marked the start of big tech earnings forecasts this week.

Dow Jones industrial average futures fell 75 points, or 0.24%. S&P 500 and Nasdaq 100 futures were down 0.96% and 2.04%, respectively.

Shares of Google-parent Alphabet fell more than 6% in extended trading. Online search giant Missed expectations on the top and bottom lines. Alphabet reported a decline in YouTube ad revenue, prompting investors to downgrade the outlook for other tech companies that rely on ad spending.

“I think we have to take a big-picture view, nobody in this market is really immune to the slowdown in digital ad spending,” Sand Hill Global Advisors’ Brenda Vingiello said Tuesday on CNBC’s “Closing Bell: Overtime.”

Other mega-cap tech stocks fell in after-hours trading after the report. Shares of MetaPlatforms fell 4.1%, while Amazon fell 2%.

Meanwhile, Microsoft later fell about 3% The tech giant’s cloud revenue is weaker than expected Despite beating revenue and earnings estimates in its latest quarterly results.

During Tuesday’s regular session, the Dow Jones industrial average advanced 337 points, or about 1.1%. The S&P 500 rose 1.6%, while the Nasdaq composite gained 2.2%. Those gains helped the major averages extend their rally for a third straight day on the back of a drop in bond yields.

Traders are looking ahead to Tuesday’s quarterly earnings results from Boeing and Kraft Heinz before the bell, and higher Big Tech earnings from Meta after the bell.

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They also watch the latest economic data on weekly mortgage applications, total inventories and new home sales.

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