(Bloomberg) — Solid quarterly earnings from America’s biggest tech firms weren’t enough to keep investors from selling late Thursday, the latest sign sentiment is turning against ultra-expensive digital megacaps.
Futures on the S&P 500 tumbled 1.5% and Nasdaq 100 contracts were down 1.9% as of 2:24 p.m. in Tokyo. Stocks had rebounded from the worst selloff in four months during the cash session ahead of the slate of megacap results.
The slide follows a red-hot run this year that saw the tech giants help haul U.S. equities to new highs amid a rampant pandemic and severe economic downturn.
“As we’ve seen in reactions from some of the earnings from these large companies even beats are not strong enough to satisfy this market, which I think speaks to how fully valued a lot of these stocks are,” said Evan Brown, head of multi-asset strategy at UBS Asset Management.