Friday 29 October 2021 1:04 pm | Updated: Tuesday 15 February 2022 6:34 pm

S&P 500 and the Nasdaq set to fall after Apple and Amazon disappoint

The so-called Magnificent Seven’s combined market capitalisation has taken a blow of at least $2.3t (£1.8t) since its July peak.

The S&P 500 and the Nasdaq indexes are expected to feel the repercussions of Apple and Amazon’s supply chain woes.

With both tech titans suggesting an air of pessimism looking into the next quarter, labour and supply shortages remain key obstacles for even the biggest players.

This, combined with rising inflation across the world, makes it difficult for investors to feel confident in the blue-chip giants.

Yesterday, Timon Cook announced the company supply chain troubles cost $6bn (£4.4bn) in the last quarter.

Apple slipped 3.5 per cent in premarket trading after the tech giant warned the impact is likely to continue into the Christmas period.

Amazon dropped 4.8 per cent after it forecast a downbeat period, as higher pay to attract workers and global disruptions may limit the company’s windfall from online retail.

Starbucks also fell 4.7 per cent after the coffee chain expects fiscal 2022 operating margin to be 17 per cent, below its long-term target, due to inflation.

At 6:44 a.m. ET, Dow e-minis were down 51 points, or 0.14 per cent, S&P 500 e-minis were down 23 points, or 0.5 per cent, and Nasdaq 100 e-minis were down 144.25 points, or 0.92 per cent.