By Ellis Mnyandu
Shares of Cisco, a network equipment maker, slumped 11
percent in Europe and dragged down other tech heavyweights,
including Oracle Corp
"Poor corporate guidance overnight is weighing on the market, so we're looking at a lower open," said Peter Cardillo, market economist at Avalon Partners in New York. "The economy is slowing and that raises questions about capital expenditures and earnings going forward."
Dow Jones industrial average futures fell 35 points. Nasdaq 100 futures declined 21.50 points.
Investors were skeptical about the outlook for Federal Reserve interest rate cuts to revive growth.
Technology is seen as particularly vulnerable to an economic downturn as slowing growth causes businesses to cancel or postpone their capital investments on technology gear.
Until recently, investors had thought the sector will be largely immune from fallout from the housing slump that has roiled the financial sector and has fanned recession fears.
Companies due to report earnings include Moody's Corp
U.S. stock indexes dropped for a third straight session on Wednesday after Federal Reserve officials cast doubt on the outlook for more interest rate cuts.
