Weaker-than-expected US economic data hit the US market, with the broad S&P 500 index ending 0.8% lower, while the 30-stock Dow Jones Industrial Average was down 0.1%. The tech-heavy Nasdaq Composite Index slipped 2.3% after an earnings warning from Snapchat’s parent company.
Snapchat (NYSE: SNAP) said the “macroeconomic environment has deteriorated further and faster than anticipated” and as a result, the company is unlikely to meet its Q2 revenue and earnings guidance.
In a memo to staff, CEO Evan Spiegel wrote, “Like many companies, we continue to face rising inflation and interest rates, supply chain shortages and labor disruptions, platform policy changes, the impact of the war in Ukraine, and more”.
Snapchat shares fell 43%, the company’s largest-ever one-day drop, and put the shivers through the rest of the big social media names.
Meta Platforms (NASDAQ: FB), owner of Facebook and Instagram, fell nearly 8% while Pinterest (NYSE: PINS) plunged more than 20%, Twitter (NYSE: TWTR) slid 5% and Alphabet (NASDAQ: GOOGL), parent company of YouTube and Google, also dropped 5%.
Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is expected to edge higher when the market opens. For a round-up of the latest news, check out my ASX 200 morning report. The Australian dollar is buying 71.1 US cents this morning.
