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On May 18, 2022, traders work on the floor of the New York Stock Exchange (NYSE) in New York City.
Getty Images/Spencer Platt
Stock futures fell overnight Wednesday as the Dow Jones Industrial Average dropped the most in a single day since 2020.
The Dow Jones Industrial Average futures dropped approximately 30 points. Futures on the S&P 500 fell 0.1 percent, while Nasdaq 100 futures down 0.2 percent.
Following a strong market sell-off, the after-hours adjustments occurred as big-box retail results revealed inflation was dragging on corporate profits.
Target and Walmart both released quarterly reports that indicated rising gasoline costs and lower customer demand affecting profitability during the highest inflation in decades.
The Dow Jones Industrial Average dropped more than 1,100 points, the most since June 2020. The blue-chip index hit its lowest point since March 2021. The S&P 500 dropped 4%, its worst decline since June 2020. The Nasdaq Composite Index dropped by 4.7 percent.
Guggenheim Partners Global Chief Investment Officer Scott Minerd told CNBC’s “Closing Bell: Overtime” on Wednesday that “this is continuing the narrative that… we’re going to go considerably lower this year in stocks before we find a bottom.”
Wednesday’s sell-off was wide, with all 11 S&P 500 sectors falling. Consumer discretionary equities took the brunt of the losses, falling 6.6 percent.
Through Thursday, investors will be able to evaluate additional corporate profits from firms such as BJ’s Wholesale, Kohl’s, Applied Materials, and Ross.
Initial unemployment claims will be released on Thursday morning.
