U.S. stock index futures fell in evening trading on Wednesday as a Wall Street rebound faltered, with persistent weakness in technology stocks, particularly major chipmakers, contributing to the decline.
Futures Market Activity
Futures for major U.S. indexes showed declines following a volatile session on Wall Street, where benchmarks ended lower despite a strong start. The S&P 500 futures fell 0.4% to 5,208.50 points, Nasdaq 100 futures declined 0.5% to 17,873.0 points, and Dow Jones futures were down 0.2% to 38,822.0 points by 19:16 ET (23:16 GMT).
Tech Sector Hits Extended Weakness
Technology stocks continued to struggle in after-hours trading, with Super Micro Computer Inc (NASDAQ:SMCI) leading the decline after reporting disappointing earnings for the June quarter. Super Micro’s stock fell 2% in after-hours trading, having dropped 20% during the regular session.
The company’s lackluster earnings raised concerns about the extent of demand driven by artificial intelligence, exacerbating losses in the chipmaking sector. NVIDIA Corporation (NASDAQ:NVDA), a market darling, saw a 1.2% drop, while Super Micro peer Dell Technologies Inc (NYSE:DELL) fell over 6%.
The downturn in chipmakers also dampened sentiment towards broader tech stocks. Major technology companies such as Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc (NASDAQ:GOOGL), and Apple Inc (NASDAQ:AAPL) experienced losses ranging from 0.7% to 1.2% in after-hours trading.
Wall Street Rebound Stalls
On Wednesday, Wall Street indexes closed lower as a rebound from recent lows lost momentum. The S&P 500 fell 0.8% to 5,199.50 points, the NASDAQ Composite dropped 1% to 16,198.86 points, and the Dow Jones Industrial Average decreased 0.6% to 38,763.45 points.
All three indexes have been struggling with significant losses in recent weeks, with the Nasdaq entering correction territory earlier this week. The market’s downturn has been fueled by growing recession fears, exacerbated by weak labor market data and disappointing business activity reports. Earnings reports have also contributed to the negative sentiment.
Disappointing Earnings Reports
Several companies reported weaker-than-expected earnings, adding to the market’s woes. Warner Bros Discovery Inc (NASDAQ:WBD) fell 11% in after-hours trading following a disappointing second-quarter earnings report, while Walt Disney Company (NYSE:DIS) dropped nearly 2% after also posting weak earnings. Bumble Inc (NASDAQ:BMBL) plummeted 30% after lowering its annual revenue forecast.
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