Overview
- A broad tech sell‑off followed major quarterly reports, with the Nasdaq sliding about 2.6 percent after Thursday's results and premarket indicators pointing to a roughly 0.6–0.7 percent lower DAX open.
- Meta reported heavy one‑off legal costs including a court‑ordered $25 billion penalty and set aside nearly $10 billion in reserves while announcing up to $145 billion in AI and data‑center spending, a combination that is weighing on profits and investor sentiment.
- Tesla said profit fell more than 40 percent to roughly $800 million as it ramps investment in self‑driving robotaxis and humanoid robots, reinforcing concerns that big AI bets are hitting near‑term earnings.
- SAP outperformed expectations with faster cloud growth, reporting currency‑adjusted cloud order volume up 26 percent and cloud revenue up 25 percent, but its results could not fully offset weakness across the US tech sector.
- Oil prices climbed to multi‑month highs on rising Middle East tensions, a move that raises inflation and interest‑rate worries and adds pressure on European markets as they open.