The stock market saw a mix of ups and downs on Wednesday, with U.S. stock futures edging higher after a turbulent session that saw the Nasdaq Composite experience its worst day since 2022. Investors were seen rotating out of big tech high-flyers, causing a shift in the market dynamics.
Dow Jones Industrial Average futures rose by 57 points, or 0.14%, while S&P 500 futures and Nasdaq 100 futures climbed by 0.19% and 0.31%, respectively. Discover Financial saw a 4% increase in extended trading after surpassing second-quarter expectations, while Beyond Meat faced a 16% drop following reports of potential balance sheet restructuring.
During regular trading hours, the Nasdaq tumbled by 2.8%, closing below 18,000 for the first time since July 1, marking its worst performance since December 2022. The S&P 500 also dropped by 1.4%. However, the Dow outperformed, gaining 243.6 points and closing above 41,000 for the first time ever.
The market has been witnessing a rotation trade as investors shift away from artificial intelligence beneficiaries towards other sectors. The Russell 2000 declined by 1% on Wednesday but has seen a significant increase of over 9% in the last five trading days.
Investors are hopeful for a broader market rally amid concerns that the tech-driven surge may be losing momentum. However, some experts warn that the change in leadership may not be sufficient to shield stocks from potential challenges, including the looming possibility of an economic slowdown.
Looking ahead, jobless claims data for the week ending July 13 is set to be released on Thursday morning, with economists expecting a slight increase from the previous week. Additionally, Domino’s Pizza, Alaska Air, and Netflix are among the companies scheduled to report earnings on Thursday.
The market remains volatile as investors navigate through changing dynamics and economic uncertainties, keeping a close eye on upcoming data releases and corporate earnings reports for further insights into the market’s direction.
