Dow sheds 519 points, Nasdaq 3.7% as Facebook falls 26.4%

U.S. stocks tanked on Thursday with selling picking up in the final hour of trading after Facebook's disappointing quarter and ahead of results from Amazon. 

The Nasdaq Composite lost 3.7% and Facebook shares tumbled 26.4%.

The social networking giant reported net income fell to $10.2 billion from $11.2 billion during the same period a year ago, or $3.67 versus $3.88 per share. Revenue rose to $33.6 billion from $28 billion a year ago.  The company warned that inflation is hurting customer's ad budgets. 

The weakness in tech spilled over into the broader market with the S&P 500 off over 2.4% and the Dow Jones Industrial Average fell 519 points or 1.5%. 

Other social media stocks fell in sympathy, including Twitter, Snapchat and Pinterest. 

Spotify shares were also weaker after the streaming giant said subscribers, now at 183 million, will be little changed in the current quarter. CEO Daniel Ek also addressed the Joe Rogan controversy. 

"I think the important part here is that we don't change our policies based on one creator, nor do we change it based on any media cycle," the chief executive said. "Our policies have been carefully written with the input from numbers of internal and external experts in this space – and I do believe they're right for our platform."

T-Mobile bucked the downtrend in the market after reporting higher than expected profits. AT&T also got a boost.

In other earnings, Honeywell's revenue of $8.6 billion fell short of Wall Street estimates sending shares down. 

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After the closing bell the focus will turn to online retailing giant Amazon.com. Investors will also parse results from Wall Street Journal parent News Corp., automaker Ford Motor, and videogame maker Activision Blizzard, which is being acquired by Microsoft for $69 billion. 

Investors are reviewing the latest round of corporate earnings to gauge the damage that rising costs have had on different industries and how companies will deal with inflation moving forward.

Most of the companies that have reported results for the last three months of 2021 have delivered earnings and revenue that topped forecasts, despite the higher costs they face due to rising inflation.

U.S. crude climbed to the $90 per barrel level, a seven-year-high while Brent was slightly higher. 

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In cryptocurrencies, Bitcoin slipped to the $36,000 level as stocks pulled back. 

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The Associated Press contributed to this report.