US futures fell in overnight trading Thursday after a number of heavyweights came under pressure following their quarterly reports.
Dow Jones industrial average futures fell 205 points. Futures on the S&P 500 and Nasdaq-100 are also trading in the negative territory.
Apple shares fell more than 4% in prolonged trading after the tech giant reported a 16% drop in iPhone sales and did not provide any guidance to investors for the previous quarter. Amazon fell 1.5% even after the ecommerce giant reported unstable Q3 business results with a big blow at the lead.
Wall Street saw a modest recovery Thursday thanks to better-than-expected U.S. gross domestic product and unemployment claim data. The 30-stock Dow has rallied more than 100 points on the positive first day of the year, while the S&P 500 is up 1.2% to start the three-day down streak. The tech-heavy Nasdaq Composite rose 1.6 percent.
However, the key averages are starting to announce the worst weekly performance of the month. The Dow is down 5.9% for the week to now, in line with the pace of its worst week since March 20. The S&P 500 has fallen 4.5% this week, heading for the week. worst since June 12.
Volatility is still growing as investors grapple with new cases of the rising coronavirus in the US and abroad. The Cboe Volatility Index (VIX), also known as Wall Street’s “measure of fear”, hit a high of 41.2 on Thursday, its highest since June 15.
“Pre-election market volatility is not unusual and has arisen around the questions surrounding the election, COVID-,” said Paul Christopher, global market strategist at Wells Fargo. 19, and economic growth and earnings, ”said Paul Christopher, Wells Fargo’s head of global market strategy, in a note Thursday. “This indigestion caused a drop in the S&P 500 Index.”
The Dow and the S&P 500 will also see the second consecutive month of losses as Wall Street ends a volatile October. The average of 30 stocks is down 4 percent this month and the S&P 500 has lost 1.5 percent. The Nasdaq performed better, up just 0.2% over the same period.
Shares in Alphabet surged more than 7% in extended trading after parent company Google announced quarterly results that surpassed Wall Street expectations. Meanwhile, Twitter fell more than 14% after the social media company reported unexpected user growth.
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