Stock futures slipped in early morning trading on Friday as stocks of large tech companies suffered after disappointing earnings reports.
S&P 500 futures and Nasdaq 100 futures both traded in negative territory. Futures on the Dow Jones Industrial Average were 76 points lower.
Amazon stock fell 4% in expanded trading after the e-commerce giant missed its third quarter earnings and revenue expectations badly. The company also issued disappointing predictions for the critical holiday season.
Apple shares also fell more than 3% in after-hours trading after the tech giant's quarterly sales fell short of expectations due to larger-than-expected delivery bottlenecks for iPhones, iPads and Macs.
The overnight action came after the S&P 500 and tech-heavy Nasdaq Composite closed Thursday's session on record highs as investors shook off disappointing economic data.
The US economy grew at an annualized rate of 2% in the third quarter, the slowest rate since the end of the 2020 recession, and fell short of expectations of 2.8% growth.
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"GDP told us what we already knew, the economy slowed significantly in the third quarter," said Ryan Detrick, chief market strategist at LPL Financial. "The good news is that we see the slowdown more than offsetting over the next few quarters as COVID trends continue to improve."
The stock market has broken records amid solid earnings. About half of the S&P 500 released quarterly results, and more than 80% of them exceeded earnings estimates by Wall Street analysts. S&P 500 companies are expected to grow profits 38.6% year over year.
All three major averages are well on their way to posting a successful week, their fourth positive week in a row. Since the beginning of the month, the S&P 500 is up 6.7%, its best monthly performance since November 2020. The blue-chip Dow is up 5.6% in October, while the Nasdaq is up 6.9%.