Investors balk at high valuations of big tech firms despite solid earnings

A strong quarterly showing from four big tech companies weren't enough to keep investors from selling late Thursday

Solid quarterly earnings from America’s biggest tech firms weren’t enough to keep investors from selling late Thursday, the latest sign sentiment is turning against ultra-expensive digital megacaps.

Futures on the S&P 500 tumbled 0.8% and Nasdaq 100 contracts were down 1.2% as of 12:55 p.m. in Tokyo. Stocks had rebounded from the worst selloff in four months during the cash session ahead of the slate of megacap results.

The slide follows a red-hot run this year that saw the tech giants help haul U.S. equities to new highs amid a rampant pandemic and severe economic downturn.

“As we’ve seen