Stock Futures Fall After Major Averages Post Losses For Two Consecutive Trading Days

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Last Updated on October 21, 2022 by Bitfinsider

As investors emerged from a turbulent trading day marked by rising bond yields and diverse corporate earnings, stock market futures moved in the wrong direction.

Futures contracts for the Nasdaq 100 fell by 0.7%, while contracts linked to the Dow Jones Industrial Average dropped 52 points, which is equivalent to a 0.17% loss. S&P 500 futures dropped 0.35%.

During the regular trading session on the indices’ second consecutive day of declines, the Dow lost 90.22 points, which is equivalent to a loss of 0.3% of its value. The S&P 500 index and the Nasdaq composite both experienced a loss of 0.8% and 0.6%, respectively.

The Dow Jones Industrial Average got off to a strong start today, reaching nearly 400 points at its session highs; however, rising Treasury yields slashed the market’s enthusiasm, causing stocks to fall. The yield on the 10-year Treasury note reached a new all-time high of 4.239%, a level that has not been seen since 2008.

However, despite the fact that today’s losses were factored in, the major averages are still up more than 2% for the week, which was driven by rallies on Monday and Tuesday, and are currently on track to have the best week since the beginning of September.

The companies’ financial results were a bit all over the place. AT&T and IBM were among the stocks that increased in price after outperforming analysts’ expectations. But Snap and Robert Half were among those falling after the companies posted results that did not meet the expectations that were set for them.

According to Jamie Cox, managing partner for Harris Financial Group, the trading that took place on Thursday is representative of a larger trend in which nervous investors are making rash decisions based on the news of the day. According to him, investors are increasingly moving into shorter-term strategies as they see the Federal Reserve creating a volatile market as it seeks to bring down inflation through interest rate hikes. He said this is because investors see the Federal Reserve creating a volatile market in their attempt to bring down inflation.

“The markets look for every sign that the inflation data is moving in such a way that the Fed can reduce its pace of interest rates, and are basically ignoring speakers and governors, and are basically ignoring everything the Fed has to say,” Cox said. “The markets look for every sign that the inflation data is moving in such a way that the Fed can reduce its pace of interest rates.”

According to what he had to say about the matter, “it lends itself to very, very choppy trading because people are trigger happy and just waiting for the signal that the pause is coming.” It’s not a good strategy for trading, and it creates a lot of market uncertainty.

As the corporate reporting season continues, investors will be watching Verizon before the bell to see how much money the company made.


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