U.S. stock futures bounced Wednesday as the market attempted to recover from April’s technology-led sell-off.
Futures tied to the Dow Jones Industrial Average rose about 230 points, or 0.7%. S&P 500 futures gained 0.5%. Nasdaq 100 futures gained 0.4%, one day after the Nasdaq Composite’s worst day since 2020.
Microsoft’s shares jumped more than 3% in premarket trading after the company beat analyst expectations on the top and bottom lines. The company also issued forward revenue guidance exceeding analyst forecasts.
“We’re trying to find a place of stability,” Kari Firestone, chairman and CEO of Aureus Asset Management, told CNBC’s “Squawk Box.” “We need to see a few more names come in with really strong, reliable and sustainable earnings so investors can get back on board.”
While Microsoft’s earnings gave investors some encouragement, Google parent Alphabet’s earnings results missed consensus estimates. Management warned on the conference call of another potentially weak quarter ahead. Alphabet shares fell about 4% premarket.
The tech-heavy Nasdaq Composite has dropped further into bear market territory, losing 3.95% on Tuesday and hitting a fresh low for the year. That was its biggest daily loss since September 2020. The index is now sitting now roughly 23% off its high.
The S&P 500 on Tuesday lost 2.8% for its worst performance since March and closed below a key support level in 4200. The Dow Jones Industrial Average shed 809.28 points, or 2.4%.
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In April, the S&P 500 is down 7.8%, the Nasdaq has lost 12.2%, and the Dow has declined 4.2%.
“The stock market is re-rating some of the best-performing stocks of the past two years, especially in the technology sector, and investors should be warned that even the most lucrative companies are not immune from pullbacks and earnings compression,” Ryan Belanger, managing principal and founder of Claro Advisors, said.
Meanwhile, shares of Robinhood shed about 4% in premarket trading Wednesday after the retail brokerage said it is cutting back on staff. The company cited “duplicate roles and job functions” after its rapid expansion last year.
Boeing saw shares fall 4% in early morning trading after an earnings miss.
Facebook parent Meta is set to report earnings Wednesday after the bell, with Apple and Amazon reporting earnings Thursday. Investors will be watching to see if tech companies’ results prove the intense selling in April has been misplaced.
