Nasdaq and S&P 500 futures slipped on Thursday, a day after a crushing selloff in megacap tech stocks steered the indexes to their biggest drop since 2022, with investors looking out for a burst of earnings releases and key economic data.

Market Snapshot

At 7:50 a.m. ET, Dow e-minis were down 16 points, or 0.04%, S&P 500 e-minis were down 7.25 points, or 0.13%, and Nasdaq 100 e-minis were down 30 points, or 0.16%.

Pre-Market Movers

Ford Motor was dropping 12.44% after second-quarter adjusted earnings of 47 cents a share missed analysts ’ estimates by a wide margin and the auto maker left unchanged its profit outlook for the year. Ford ’ s operating profit in the second quarter was $2.8 billion, down 26% from a year earlier. The company ’ s electric-vehicle business lost $1.1 billion in the period, narrower than a year-earlier loss of $1.3 billion.

Tesla extended losses, falling 1.07% in premarket trading, after shares of the maker of electric vehicles closed down 12% on Wednesday, the stock ’ s largest percentage decrease since Sept. 8, 2020, when Tesla dropped 21%, according to Dow Jones Market Data. The reason for the steep decline was Tesla ’ s second-quarter earnings, which missed analysts ’ expectations when they were released late Tuesday. KGI Securities downgraded shares to Hold from Buy.

Alphabet was down 0.46% in premarket trading. The parent of Google and YouTube sank 5% on Wednesday after Alphabet topped second-quarter profit and sales expectations but ad revenue from YouTube disappointed.

Shares of chip maker Nvidia declined 0.92% after the stock dropped 6.8% on Wednesday, falling along with other artificial-intelligence names. Server maker Super Micro Computer was down 1.5% after slumping 9.2% on Wednesday.

Shares of International Business Machines rose 3.9% after the company posted adjusted earnings in the second quarter of $2.43 a share, higher than analysts ’ estimates of $2.18, and revenue of $15.8 billion beat expectations of $15.62 billion. CEO Arvind Krishna said IBM was seeing rising customer demand for new artificial-intelligence projects. The CEO added that IBM ’ s "book of business for generative AI has grown to more than $2 billion since the launch of Watsonx one year ago."

Cloud-software company ServiceNow jumped 7.1% after reporting second-quarter revenue of $2.63 billion, up 22% from a year earlier and higher than Wall Street estimates. Subscription revenue in the period rose 23%. ServiceNow also boosted its fiscal-year outlook for subscription revenue. Meanwhile, ServiceNow Chief Operating Officer CJ Desai resigned following an internal investigation that found the hiring of Raj Iyer, the company ’ s head of public sector thought leadership and business development, violated company policy.

Southwest Airlines was falling 4.6% after the carrier posted better-than-expected second-quarter earnings and announced plans to introduce assigned and premium seating, a change from its traditional open-seating policy.

American Airlines, meanwhile, tumbled 7% after issuing a profit warning for the third quarter. The airline said it expects to break even in the third quarter. Analysts had been expecting third-quarter earnings of 48 cents a share.

Edwards Lifesciences was falling 23% after second-quarter revenue of $1.63 billion missed expectations of $1.66 billion. The medical-technologies company also reduced full-year sales guidance for its transcatheter aortic valve replacements.

Chipotle Mexican Grill rose 3.7% after the fast-casual burrito chain posted second-quarter earnings that rose 33% from a year earlier. Revenue jumped 18%, getting an assist from price increases.

Honeywell International declined 4.5% after the industrial company topped second-quarter earnings expectations but trimmed full-year guidance.

Market News

Singapore Data Center Upstart SMC Raising $950 Million to Tap AI Server Boom

Singapore data center upstart Sustainable Metal Cloud is raising about $950 million in fresh funds, seeking to tap the global artificial intelligence boom to spur its growth.

The company, an affiliate of Australia ’ s Firmus Technologies, is finalizing an initial equity round of about $400 million, people familiar with the matter said. The six-year-old firm is also in the process of raising $550 million in debt, the people said, asking not to be identified as the plans are private.

Microsoft Introduces Gen-AI to Bing Search, Similar to Google's AI Overviews

Microsoft has revealed a new generative artificial intelligence search tool with Bing, which it is currently utilizing on a small percentage of user queries.

"By combining the power of generative AI and large language models with the search results page, Bing's generative search creates a bespoke and dynamic response to a user's query," the company said in a blog post.