Futures fall after Snapchat owners profit warning

　　div classBodysc17zpet90 cdBBJodivpReuters – U.S. stock index futures fell on Tuesday as a weak forecast from Snap Inc hit shares of social media companies, a day after Wall Street enjoyed a relief rally.p

　　pThe Snapchat owners shares plummeted 29.3 in premarket trading after the company slashed its secondquarter earnings forecast and said the economy had worsened faster than expected in the last month.pdivdivdiv classBodysc17zpet90 cdBBJodiv

　　pGoogleowner Alphabet Inc, Twitter Inc, Meta Platforms Inc and Pinterest Inc, which earn a chunk of their revenue from advertising, fell between 3.7 and 12.4.p

　　p“Snaps warning has triggered fears that advertising spend has peaked for now,” Russ Mould, investment director at AJ Bell, said.p

　　p“When the economic outlook is gloomier, advertising spend is pared back. This will put investors in a bad mood and create more storm clouds just at the point when many were hoping the market slump was close to bottoming out.”p

　　pWall Streets main indexes ended sharply higher on Monday in a broadbased rally led by beaten down banks and Big Tech shares.p

　　pThe rebound came on the heels of the S&P 500 and the Nasdaqs longest streak of weekly declines since the dotcom bust in 2001, on concerns about the impact of persistently high inflation on the U.S. economy and corporate earnings.p

　　pAt 06:17 a.m. ET, Dow eminis were down 227 points, or 0.71, S&P 500 eminis were down 43.25 points, or 1.09, and Nasdaq 100 eminis were down 201.75 points, or 1.68.p

　　pAirbnb Inc slipped 2.3 after the vacation rental firm said it would shut down its domestic business in China from July 30, joining a long list of Western internet platforms that have opted out of the China market.p

　　pThe CBOE volatility index, also known as Wall Streets fear gauge, rose to 29.39 points.p

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　　pp Reporting by Devik Jain and Anisha Sircar in Bengaluru Editing by Shounak Dasguptap

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