S&P 500 and Nasdaq futures fell Thursday after a sharp sell-off the previous day.
The futures on the S&P 500 lost 0.2%. Dow Jones Industrial Average futures were flat. The Nasdaq 100 futures were lower, down 0.7% on negative reaction to tech gains the night before.
In its earnings report for the first quarter of fiscal 2021, Apple achieved its highest revenue in its history of $ 111.4 billion. Sales for each product category increased by double-digit percentage points. However, the tech giant’s shares fell 2% in premarket trading.
Tesla fell 5.07% in premarket trading after the electric car maker posted worse-than-expected earnings last quarter. The company expects average annual delivery growth of 50% in the future.
Wall Street suffered heavy losses on Wednesday, with the S&P 500 and Dow recording their worst day since October as the speculative spending spree on sharply shortened stocks kept investors on their toes. Some fear that hedge funds could be forced to reduce their holdings in order to raise cash.
“Brief bottlenecks that lead to implosions in some hedge funds join SPACs, IPOs and Bitcoin as data points supporting a bubble thesis,” said Scott Knapp, chief market strategist at CUNA Mutual Group, in an email . “This is a time of caution for investors.”
The trading volume exploded in the previous session with 23.7 billion shares changing hands. This was the heaviest trading day since at least 2007.
Brick and mortar video game retailer GameStop, a target on the Reddit wallstreetbets chat room, rose another 134% on Wednesday and boosted its profits to a whopping 1,744% in January. AMC Entertainment was up over 300% on Wednesday alone, posting the highest volume ever.
GameStop was back higher in premarket trading and was able to offset previous losses. AMC Entertainment was flat.
Facebook stock remained relatively unchanged in over-the-counter trading after the company warned that a reversal in pandemic trends could hurt its advertising business. The social media company prevailed in the upper and lower ranges in the fourth quarter.
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