Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., October 23, 2024.
Brendan McDermid | Reuters
Futures linked to the S&P 500 traded near the flatline Wednesday night after the index notched a three-day run of losses.
S&P 500 futures added 0.1%, while Nasdaq 100 futures rose nearly 0.4%. Dow futures slid 79 points, or roughly 0.2%
In after-hours trading, Tesla surged 12% after the electric vehicle manufacturer beat the Street’s profit expectations in the third quarter. Tech giant International Business Machines fell more than 2% as consulting revenue narrowly missed analysts’ estimates.
The Dow ended Wednesday’s session with its biggest one-day loss since early September, dropping more than 400 points, or 0.96%. The S&P 500 slipped 0.92%, and the Nasdaq Composite fell 1.6%. It was the third straight losing day for the Dow and the S&P 500.
The 10-year Treasury yield has been marching higher this week, topping the 4.25% threshold on Wednesday at the high of the session. The run-up in yields has kept stocks under pressure as of late.
Paul Hickey, the co-founder of Bespoke Investment Group, said that he wouldn’t read too much into the recent sell-off in stocks.
“It’s a rough day today, but you just have to put it in the perspective of what we’ve seen over the last six weeks. Part of this rally has been driven by the fact that earnings results — to start with, the big banks — were very strong, and their stock price reactions were also positive,” he said on CNBC’s “Closing Bell: Overtime” on Wednesday afternoon. “It’s a rough day, but these days happen.”
Hickey cautioned that the market might experience a slight pullback after November’s U.S. presidential election. Still, he reassured that the market would find its footing after the matter.
“You could be set up for the stage of disappointment once the election comes and [see a] sell the news reaction. But I don’t think it’s going to be anything too bad. The overall market backdrop is very good in terms of breadth, earnings, the economy, and the Fed is at the market’s back,” he said.
More earnings results are expected on Thursday. United Parcel Service, Honeywell, Northrop Grumman, Southwest Airlines and American Airlines are among the companies set to report before the market opens.
On the economic front, weekly jobless claims are due on Thursday morning. New home sales and building permits data are also slated for release.
