Market Snapshot: Futures point to Nasdaq sliding further into correction territory as Meta shares retreat

by | Oct 26, 2023 | Stock Market

U.S. stock futures fell Thursday as shares in Meta pulled back following results and bond yields hovered near recent highs.How are stock-index futures trading
S&P 500 futures
dipped 28 points, or 0.6%, to 4181

Dow Jones Industrial Average futures
fell 109 points, or 0.3%, to 33041

Nasdaq 100 futures
dropped 139 points, or 1%, to 14339

On Wednesday, the Dow Jones Industrial Average
fell 105 points, or 0.32%, to 33036, the S&P 500
declined 61 points, or 1.43%, to 4187, and the Nasdaq Composite
dropped 319 points, or 2.43%, to 12821.

What’s driving markets Poorly received earnings from some big technology companies continued to weigh on markets in early trading Thursday. The Nasdaq Composite in the previous session recorded its biggest daily drop since February, after shares of Alphabet
fell nearly 10% in reaction to its results. This decline took the tech-heavy benchmark to a 10.7% loss since hitting a recent high in mid July. A double-digit retreat from a high is considered a market correction by technical analysts. And the new day is in line to bring additional losses as shares of Meta Platforms
shed nearly 4% in premarket action following its earnings presentation late Wednesday. Next up in big tech is
which will report after Thursday’s close. “This morning risk-off has continued,” said analysts at Saxo Bank. “One driver seems to be the market recalibrating technology valuations amid rising real yields and that cycle could go on for a while.” Indeed, early Thursday the 10-year Treasury yield
rose again to within a few basis points of 5%, before falling back. The benchmark borrowing cost remains just shy of 16-year highs following signs the U.S. economy has so far shrugged off the Federal Reserve’s campaign of interest rate rises. “Unfortunately for stocks, robust economic data comes at an unruly price, with the strong housing market likely contributing to a higher rate environment,” said Stephen Innes, managing partner at SPI Asset Management.

To this end, traders will be keeping a close eye on U.S. economic updates set for release on Thursday. These include third-quarter GDP, weekly initial jobless claims, and the September readings for durable goods orders, the trade balance in goods and wholesale and retail inven …

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