Snap dives 28% pulling ASX tech giants lower on rising inflation

Snap’s share price dived over 28 per cent after an earnings miss, warning investors of a hiring slowdown with the Nasdaq futures falling 1.3 per cent as investors fret about tech giant’s reliance on internet advertising. The news pulled Facebook-owner Meta Platforms and Google-owner Alphabet down seven and almost four per cent respectively.

Since investor’s sentiment is fragile, any disturbance is enough for investors to push the sell button to remove the pain. 

Snap now joins the ranks of Meta as the social media giant plans to slow down hiring. The sniff of potential layoffs in a high inflationary environment, where economic growth has contracted ahead of the next US GDP figures is enough to spook investors.

The sentiment has transcended into the local market with information tech as the worst performer, down 2 per cent as the Australian sharemarket defied the SPI futures to open in the red.

Afterpay owner Block (ASX:SQ2) is leading the fall by 6.7 per cent to $116.32 with Technology One (ASX:TNE) is down 4.2 per cent to $9.97. 

However on a positive note, iron ore miners are extending its gains with the material sector offsetting these losses with Fortescue Metals (ASX:FMG) adding another 1.1 per cent from yesterday’s 2.8 per cent gain while BHP (ASX:BHP) is up 0.5 per cent to $48.07.