S&P 500, Nasdaq Set To Open Lower After Amazon, Apple Warnings

The S&P 500 and the Nasdaq were set to open lower on Friday as gloomy forecasts from megacaps Amazon and Apple outweighed data that showed U.S. consumer spending increased more than expected in September.

Amazon.com Inc joined other Big Tech firms that have disappointed investors this week by predicting a slowdown in sales growth for the holiday season amid a hit to purchasing power of consumers. Shares tumbled 13.8% in premarket trade.

If the losses hold to the end of the session, about $155 billion was set to be wiped out from its market value.

Apple Inc cautioned revenue growth could see some pressure in the December quarter but shares edged 0.2% higher as the iPhone maker's fourth-quarter results showed some resilience.

Shares of other megacap tech companies such as Microsoft and Google-parent Alphabet, which reported downbeat earnings earlier this week, were mixed.

Tech sector earnings were viewed as a major test of the strength of corporate America in the face of decades-high inflation. Their dismal results and warnings have added to fears of a looming recession from aggressive interest-rate hikes by the Federal Reserve.

Data showed underlying inflation pressures continued to bubble, even as U.S. consumer spending increased more than expected in September.

The Commerce Department's core Personal Consumption Expenditures Index, the Fed's preferred inflation measure, climbed 5.1% in September compared to an expected 5.2% rise year-on-year when stripped of volatile food and energy costs.

The report briefly assuaged worries about the pace of rate hikes, but did not change any expectations of another jumbo-sized 75 basis-point increase in November. [FEDWATCH]

For December, however, traders are largely expecting a 50 basis-point increase.

"If you're a Fed pivot believer, then you didn't see anything in these numbers to scare you off," said Matthew Tuttle, Chief Executive of Tuttle Capital Management in Connecticut.

"I wouldn't be shocked to see S&P 500 make a run and turn green here. I don't know if the Nasdaq can, given Amazon's weight. Bottom line is these numbers, if you're bullish, do nothing to dissuade you."

At 9:01 a.m. ET, Dow e-minis were up 49 points, or 0.15%, S&P 500 e-minis were down 12.5 points, or 0.33%, and Nasdaq 100 e-minis were down 84 points, or 0.75%.

The blue-chip Dow Jones Industrial Average is up for the fourth straight week, while the tech-heavy Nasdaq tracked weekly losses.

Intel Corp was a bright spot, up 5.5% after the chipmaker cut its capital spending forecast, helping ease pressure on Dow futures.

T-Mobile US Inc rose 3.1% after the telecoms giant raised its annual forecast for wireless subscriber additions.

Twitter was set to be delisted from the New York Stock Exchange after Tesla chief Elon Musk completed his $44 billion acquisition of the social media company. Shares of Tesla were down 0.1%.