- April 27, 2022
- By: Admin1_blog
- US Market
U.S. stock futures were higher early Wednesday morning after the major averages continued their April sell-off amid concerns of an economic slowdown, and Wall Street considered earnings that came in after the bell.
Dow Jones Industrial Average futures rose 254 points, or 0.77%. S&P 500 futures were 0.58% higher while Nasdaq 100 futures gained 0.36%.
Major tech stocks continued their declines in after hours trading. Alphabet’s stock price dropped more than 2% after the company reported earnings. Shares of Meta Platforms, which is reporting earnings on Wednesday, also dropped more than 2%.
Meanwhile, shares of Robinhood also dropped more than 2% in extended trading after the retail brokerage said it is cutting back on staff. The company cited “duplicate roles and job functions” after its rapid expansion last year.
On Tuesday, the tech-heavy Nasdaq Composite dropped further into bear market territory, losing 3.95% and hitting a fresh 52-week low. The index is now sitting now roughly 23% off its high. The Dow Jones Industrial Average shed 809.28 points, or 2.4%. The S&P 500 lost 2.8%.
In April, the S&P 500 is down 7.8%, the Nasdaq lost 12.2%, and the Dow has declined 4.2%.
Those moves came as fears of a global economic slowdown spurred investors to ditch tech stocks ahead of their quarterly results.
“It’s a high volatility, low volume market that’s concerned about two things,” said Art Hogan, chief market strategist at National Securities. “One is, you know, Federal Reserve policy, and the other is the China lock downs and how long they last.”
Facebook parent Meta is set to report earnings on Wednesday, with Apple and Amazon reporting earnings on Thursday. T-Mobile, Boeing, PayPal and Ford are also reporting earnings on Wednesday.
On the economic front, investors will be watching for the latest data on weekly mortgage applications, international trade and pending home sales.