“Tech giants lead the charge as the stock market reaches new heights, but investors remain cautious amidst rising inflation concerns and global economic uncertainties.”
Nasdaq 100 futures and S&P 500 futures experienced a decline in the regular session, with Nasdaq dropping 0.6% and S&P 500 falling 0.3%. Dow Jones Industrial Average futures, on the other hand, were relatively flat.
After the market closed, several corporate earnings reports were released. Meta, the parent company of Facebook, and IBM beat earnings and revenue estimates, resulting in a 2.7% jump for Meta’s shares and a 1.2% increase for IBM’s shares. However, Mattel experienced a decline of 6.8%.
These movements in the market followed a brutal trading session, which was partly driven by a significant decline in Alphabet, the parent company of Google. Alphabet’s revenue in its Google cloud unit fell well below analyst estimates, leading to a 9.5% drop in its shares. This decline also affected other tech giants.
The S&P 500 fell about 1.4% and closed below the 4,200 level, which was closely watched by chart analysts and investors. This was the first time the index closed below this threshold since May. The Nasdaq Composite lost approximately 2.4%, recording its worst day since February 21. Meanwhile, the Dow Jones Industrial Average shed 0.3%.
Investors are now eagerly awaiting third-quarter gross domestic product estimates, which will be released on Thursday morning. Treasury yields are also a significant concern as they remain near multi-year highs.
Overall, the market experienced a selloff, driven by disappointing earnings and concerns over economic indicators. Investors will be closely monitoring upcoming data and market trends to make informed decisions.