FTSE 100 Live: Tech stocks slide on growth fears, Lloyds and Glaxo post updates

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nvestors are reeling from a big slide in the value of US tech stocks as worries grow about the global economic outlook.

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Apple and Amazon shares fell 4% last night as Wall Street reacted to mixed US earnings, an escalation in the Ukraine war and fears of a hard landing as central banks battle inflation.

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In London, confidence is being further tested by first quarter trading updates from blue-chip companies including Lloyds Banking Group, GlaxoSmithKline, Persimmon and WPP.

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Tech stocks slide, oil price higher

Growth and technology stocks led a Wall Street route last night as the darkening economic outlook caused investors to take cover.

The Nasdaq fell almost 4% to a one-year low and the Dow Jones Industrial Average S&P 500 lost more than 2% during another session of volatility. Apple and Amazon shares fell 4% and Tesla slumped 12% on fears that Elon Musk may have to offload some of his stake in the electric car marker in order to finance the Twitter takeover.

The Nasdaq is now down by more than 20% this year and by 10% in April, which is usually a strong month for the tech-led index.

Analysts at Nordic bank SEB said: “Concerns about growth, interest rates, component shortages, and investment prices are some of the heavy clouds that are currently hanging over equity markets.”

Hopes of a rebound in today’s Wall Street session have been dashed by a mixed reception to results after the closing bell from Microsoft and Alphabet. The Google owner missed its earning estimates, leaving shares a further 3% lower in after-hours trading.

Michael Hewson, chief market analyst at CMC Markets, expects the FTSE 100 index to open 10 points lower at 7376, having surrendered most of the gains achieved in the early part of yesterday’s session.

He said the weakness partly reflected a lack of confidence in the ability of central banks to engineer a “soft landing” as they tackle inflation.

The Brent crude price, meanwhile, is higher at $105 a barrel after a spike caused by Russia saying that it would cut natural gas supplies to Poland and Bulgaria.

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Credit: www.standard.co.uk /

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