US stock futures opened mixed Tuesday evening after major stock indexes fell during the normal trading day, as concerns about inflation and global economic growth increased volatility in risky assets.
Contracts on the S&P 500 fell. The index fell 2.8 percent on Tuesday, posting its biggest drop in seven weeks, with technology stocks falling in particular. The Nasdaq Composite fell 4% to 12490.74 – its lowest level since December 2020. With only three trading days remaining in April, the S&P 500 is headed for a 7.8% monthly decline.
The tepid quarterly earnings season continued, and the major tech companies that reported earnings after the market closed on Tuesday produced mixed results. Microsoft shares soared More than 5% are in late trading after the company reported sales and profits that beat estimates, driven in part by more growth in the Azure cloud computing business. However, Alphabet saw shares decline After posting a sharp slowdown in YouTube ad sales growth and profit loss, even as company-wide revenue aligned with estimates. Peer-to-peer advertising-driven tech giant Meta Platforms is preparing to announce results on Wednesday after the market closes.
The sell-off across US stocks on Tuesday extended from the volatility seen so far in April and year to date, with investors continuing to watch for signs of rising inflation and more specter of supply chain stress. China is struggling with the ongoing resurgence of COVID-19 in key regions. And although the Federal Reserve is going through a blackout period ahead of the central bank’s meeting in May next week, investors still keep the prospects of monetary policy tightening in their minds, with rising interest rates and borrowing costs to pressure valuations of high-growth companies. .
“A wall of anxiety has been built, as it relates to Fed concerns,” Matt Stuckie, senior portfolio analyst at Northwestern Mutual Wealth Management, Yahoo Finance Live said on Tuesday. “A little over three months ago, the futures market was pricing in only three or four rate hikes for 2022. We’re a little bit higher than that now. And the markets are pricing in the fed funds policy rate at about 2.7% by the end of the year. That’s a great deal. From the escalation of the Fed’s tightening that has been building up throughout the year. Which is one of the main reasons we are seeing higher volatility as well.”
Given these myriad concerns, other analysts have suggested that investors are preparing for more volatility in the near term.
“There are some names that have been very cut, but I think there are a few cuts. So I would be cautious about entering the markets at this point,” said Kathy Entwistle, managing director of private wealth management at Morgan Stanley. Yahoo Finance Live said. “It’s impossible to call a bottom, so we like to charge a little more dollar on average as well.”
She added: “The supply chain has been a problem, we have problems in China, we have inflation – these are all things we have known and are repeating.” “But I think everything has come to a head now and everyone is at this point where it seems like there’s nowhere else to go. We know that. [Fed] Actions will finally happen and that will affect the markets.”
6:10pm ET Tuesday: Stock futures open mixed
Here’s where the stock traded on Tuesday evening:
S&P 500 futures contracts (ES = F.): -4 point (-0.1%) to 4,166.5
Dow futures contractsYM = F.): +40 points (+0.12%) to 33200.00
Nasdaq futures contractsNQ = F.): -41.50 points (-0.32%) to 12,974.50 points
Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter.