Nasdaq futures drop 2.3% as tech earnings disappoint

Intel shares slumped more than 25% before the market opened on Friday, the sharpest move among major U.S. tech names. The chipmaker issued a softer-than-anticipated fourth-quarter outlook, citing continued weakness in the personal computer market.

Amazon stock slid nearly 7% in premarket trading. The company provided a cautious sales forecast for the current fourth quarter, which covers the critical holiday shopping period. This followed fiscal third-quarter results that fell below Wall Street analysts' expectations.

Alphabet Class A shares were down slightly before the open after a brutal session on Thursday. The company behind Google and YouTube saw its stock fall more than 12% on Thursday, its worst day since trading began more than 20 years ago. Investors reacted to weaker summer growth than expected, amid scrutiny over the company's heavy spending on artificial intelligence.

These moves pressured U.S. futures on Friday. Contracts for the Nasdaq composite declined 2.3%, while S&P 500 futures dropped 1%. Dow Jones Industrial Average futures remained unchanged. AI-related stocks have shown volatility recently, rising on enthusiasm for the technology and falling on concerns about supply constraints.

Bitcoin dropped about 3% to $77,695 following a $6.36 billion hack at the cryptocurrency exchange Binance. The exchange temporarily suspended withdrawals and deposits in response to the breach.

Energy prices rose as geopolitical tensions in the Middle East persisted. Benchmark U.S. crude oil climbed 2.1% to $104.13 a barrel. Brent crude, the international standard, gained 2.5% to $113.51 a barrel. The price remains near the high end of its range since the war with Iran began, with the highest price since then reaching nearly $120 in March.

The British military reported that a tanker caught fire Friday after a small boat attached two explosives to its hull while transiting the Strait of Hormuz. The vessel was temporarily disabled. Iran's Revolutionary Guard said Thursday that three oil tankers struck mines while attempting to leave the strait via an unauthorized route. The UK Maritime Trade Operations reported that October is already the busiest month for shipping attacks in the strait since March.