(Bloomberg) — Technology stocks dragged down US equity futures on Thursday after a disappointing outlook from Meta Platforms Inc. cranked up the pressure on other tech giants in a high-stakes earnings week.

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Nasdaq 100 contracts fell 1%, with Meta accounting for more than half of that decline. The Facebook parent tumbled as much as 15% in premarket trading after it projected second-quarter sales below analyst expectations and increased spending estimates for the year. Alphabet Inc., which reports earnings later along with Microsoft Corp., also dropped. S&P 500 futures slid 0.7%.

Gains from the start of the week are flagging, suggesting the wagers on an AI-driven profit boost that powered Wall Street’s record-breaking rally may be overdone. US data due Thursday could turn the focus back to the timing of Federal Reserve policy easing.

“I think we are just hitting a little bit of a reality check,” Sonja Laud, chief investment officer at Legal & General Investment Management, said on Bloomberg Television. “This doesn’t take away the excitement around the potential going forward, but it’s probably valuation coming back to a more realistic pathway.”

Europe’s Stoxx 600 Index edged lower as traders processed a deluge of corporate updates on the busiest day of the earnings season. Anglo American Plc soared 14% after rival BHP Group made an all-share takeover proposal valuing it at £31.1 billion ($38.8 billion) in a deal that would create the world’s largest copper miner.

Beyond corporate results, traders are bracing for US economic growth figures after scaling back expectations for Fed interest-rate cuts for weeks. Economists surveyed by Bloomberg predict GDP likely cooled to around 2.5% in the first quarter, with the figures still potentially suggesting persistent inflationary pressures.

“Any downside surprises could see markets bringing expected Fed interest rate cuts earlier — after having been pushed out to much later this year,” economists at Rand Merchant Bank in Johannesburg said. “However, upside surprises could see continued market volatility as the market tries to ascertain the risk that a hotter-than-expected economy poses to anticipated interest-rate cuts.”

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Treasuries were little changed after yields rose in the previous session. Investors absorbed a $70 billion sale of five-year Treasuries on Wednesday at a slightly higher-than-anticipated yield, following an even-stronger show of demand for the auction of two-year notes on Tuesday. Another $44 billion of seven-year notes are due to be sold Thursday. A gauge of dollar strength ticked lower.

Meanwhile, the yen extended losses after weakening beyond 155 per dollar for the first time in more than three decades on Wednesday, heightening the chances of intervention ahead of Bank of Japan’s policy decision Friday.

The Japanese currency weakened to 155.74 per dollar on Thursday, a new 34-year low. The BOJ is forecast to keep its interest rate settings unchanged, while the yen’s plunge makes it more likely the bank will tone down its stance on keeping policy easy.

Corporate Highlights:

• American Airlines Group Inc. said it expects a second-quarter profit greater than Wall Street’s expectations as the carrier navigates still-high fuel costs and capitalizes on travel demand while some competitors pare domestic flying.

• Caterpillar Inc. reported first-quarter results that showed machinery sales dipping from a year earlier and warned its second-quarter figures are also expected to be lower.

• Lazard Inc. posted its best first-quarter revenue on record as the investment bank jostles for position among boutiques to take advantage of the rebound in mergers and acquisitions.

• Southwest Airlines Co. is slowing growth, ending service at four airports and offering voluntary leaves to address “significant challenges” in 2024 and 2025 created after Boeing Co. again reduced the number of aircraft the carrier will receive this year.

• Barclays Plc posted first-quarter revenue that topped analyst estimates after its stock traders collected a surprise windfall from tumultuous global markets.

• Deutsche Bank AG relied on its traders and investment bankers to make up for a slowdown in income from lending, as Chief Executive Officer Christian Sewing seeks to deliver on an ambitious revenue goal.

• BNP Paribas SA’s fixed-income traders trailed all of the large Wall Street banks in the first quarter, taking the shine off a strong performance in other parts of the investment bank.

• Unilever Plc sales jumped more than expected in the first quarter as Chief Executive Officer Hein Schumacher pushes ahead with his turnaround plan.

Key events this week:

• US GDP, wholesale inventories, initial jobless claims, Thursday

• Microsoft, Alphabet, Airbus earnings, Thursday

• Japan rate decision, Tokyo CPI, inflation and GDP forecasts, Friday

• US personal income and spending, PCE deflator, University of Michigan consumer sentiment, Friday

• Exxon Mobil, Chevron earnings, Friday

Some of the main moves in markets:

Stocks

• S&P 500 futures fell 0.6% as of 7:51 a.m. New York time

• Nasdaq 100 futures fell 1%

• Futures on the Dow Jones Industrial Average fell 0.6%

• The Stoxx Europe 600 fell 0.3%

• The MSCI World index fell 0.2%

Currencies

• The Bloomberg Dollar Spot Index fell 0.1%

• The euro rose 0.2% to $1.0719

• The British pound rose 0.4% to $1.2510

• The Japanese yen fell 0.1% to 155.56 per dollar

Cryptocurrencies

• Bitcoin fell 0.3% to $63,847.39

• Ether fell 0.6% to $3,111.28

Bonds

• The yield on 10-year Treasuries was little changed at 4.65%

• Germany’s 10-year yield declined one basis point to 2.58%

• Britain’s 10-year yield declined one basis point to 4.32%

Commodities

• West Texas Intermediate crude rose 0.2% to $82.96 a barrel

• Spot gold rose 0.6% to $2,329.47 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Jan-Patrick Barnert and Divya Patil.

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