Stock futures in the U.S. saw a slight increase on Wednesday evening following the Nasdaq Composite’s worst performance since 2022. Dow Jones Industrial Average futures rose by 0.16%, while S&P 500 and Nasdaq 100 futures climbed by 0.20% and 0.32%, respectively. Discover Financial experienced a 3% surge in extended trading after surpassing second-quarter expectations. On the flip side, Beyond Meat plummeted approximately 16% after reports surfaced that the meat substitute company is engaging in talks with bondholders to restructure its balance sheet.
During regular trading hours, a rotation trade was evident as the Nasdaq dropped by 2.8% and the S&P 500 fell by 1.4%, marking the Nasdaq’s worst day since December 2022. However, the Dow Jones Industrial Average, with less tech exposure, managed to perform better, gaining 0.6% and closing above 41,000 for the first time ever.
Investors have been shifting away from AI beneficiaries in anticipation of a potential September rate cut, boosting optimism in the market. This change in sentiment has benefited small-cap stocks, with the Russell 2000 index registering a 1% decline on Wednesday, yet showing a 9% increase over the past five trading days.
Market analysts believe that while a change in market leadership may provide some protection, challenges lie ahead, including the possibility of an economic slowdown. Lauren Goodwin, chief market strategist at New York Life Investments, highlighted this on CNBC’s “Closing Bell” on Wednesday.
Looking ahead, jobless claims data is set to be released on Thursday, with economists expecting an increase to 229,000. Additionally, Domino’s Pizza and Alaska Air are slated to report earnings before market open, while Netflix is expected to announce its results after the close.
Vocabulary List:
- Surge /sɜːrdʒ/ (noun): A sudden powerful forward or upward movement.
- Plummeted /ˈplʌməˌtɪd/ (verb): Fell or dropped straight down at high speed.
- Anticipation /ænˌtɪsɪˈpeɪʃən/ (noun): The act of looking forward to something or expecting it.
- Restructure /ˌriːˈstrʌktʃər/ (verb): To organize something in a different way.
- Earnings /ˈɜrnɪŋz/ (noun): Money obtained in exchange for labor or services.
- Decline /dɪˈklaɪn/ (verb): To decrease in quality quantity or importance.
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