Traders work on the morning trading floor of the New York Stock Exchange on May 24, 2024.
Michael M. Santiago | Getty Images
U.S. stock futures fell overnight on Wednesday as Salesforce shares slumped after missing quarterly earnings and a weak outlook.
Futures Dow Jones Industrial Average It fell 260 points, or 0.7 percent. S&P 500 Futures It fell 0.3% Nasdaq 100 Futures It fell 0.4%.
In extended trading, Salesforce The company’s shares fell about 16% after first-quarter sales fell short of expectations. The company’s second-quarter profit and sales outlook also fell short of market expectations, as did its full-year sales guidance. American Eagle Outfitters The stock also fell more than 8% after first-quarter revenue fell short of analysts’ expectations.
In Wednesday’s session, Nasdaq Composite Index It was its worst session of trading in May, down about 0.6%, despite Nvidia’s 0.8% gain. S&P 500 Decreased by 0.7%, Dow It fell by about 1.1%.
It was a particularly tough day for the stock market, with more than 400 stocks in the S&P 500 index falling and all 11 sectors dropping.
Upward trend 10-Year Government Bond Yields above 4.6% have weighed on investor sentiment, said Ross Mayfield, an investment strategy analyst at Baird & Co. Rising yields can be bad news for stock investors because they reduce the multiples investors are willing to pay for stocks, making safer investments like Treasury bonds and money-market funds more attractive.
“We have a background of ‘longer and higher,’ which is not new news, [current] “A lack of catalysts weighs on the average stock price, especially in a market where stocks are soaring like they are right now,” Mayfield said.
On Thursday, investors will be keeping an eye on weekly jobless claims numbers, as well as the second release of first-quarter real gross domestic product. The main event in economic data this week is Friday’s release of the April Personal Consumption Expenditures Price Index report, the Federal Reserve’s preferred inflation gauge.
Earnings season continues on Thursday with Best Buy and Dollar General scheduled to report quarterly results in the morning, while Dell Technologies, Costco, Gap and Nordstrom are scheduled to report after the market close.
