© Reuters. FILE PHOTO: A woman stands in front of the logo of Snap Inc on the floor of the New York Stock Exchange (NYSE) in New York City, NY, U.S. March 2, 2017. REUTERS/Lucas Jackson
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(Reuters) – Nasdaq futures tumbled on Friday, dragged down by elevated U.S. Treasury yields and Snap (NYSE:)’s revenue warning for the busy holiday quarter that rattled shares of other social media companies.
The owner of photo messaging app Snapchat lost a quarter of its market value in premarket trading after it also posted its slowest revenue growth in five years as advertisers cut spending due to spiraling inflation and geopolitical woes.
Other companies that rely on ad revenue including Alphabet (NASDAQ:) Inc, Twitter Inc (NYSE:), Meta Platforms Inc and Pinterest (NYSE:) Inc fell between 1.8% and 7.2%.
The slide in mega-cap growth stocks also comes against the backdrop of strengthening U.S. Treasury yields on expectations of continued aggressive rate hikes by the U.S. Federal Reserve, with markets widely expecting a fourth 75-basis-point hike at its November meeting.
U.S. stocks closed lower on Thursday as data on the labor market and comments from a Fed official reinforced rapid rate hike expectations and outweighed a flurry of solid corporate earnings.
At 5:27 a.m. ET, were down 136 points, or 0.45%, were down 23.25 points, or 0.63%, and were down 104.5 points, or 0.94%.
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