Stock futures edged higher Tuesday night after Wall Street ended a three-day losing streak.
S&P 500 futures rose 0.8%, Nasdaq 100 futures jumped 1.1%, and Dow Jones futures increased by 251 points, or about 0.6%.
However, in after-hours trading, Super Micro Computer shares fell over 13% following disappointing fiscal fourth-quarter earnings.
Similarly, Airbnb slid 16% due to underwhelming second-quarter results.
Tuesday’s regular trading session saw major indices break their losing spell. The S&P 500 and Nasdaq Composite each climbed 1%, while the Dow added nearly 300 points.
This recovery followed Monday’s sharp declines, driven by recession fears and the unwinding of the yen carry trade.
While Tuesday’s rebound lifted all 11 S&P 500 sectors, the future remains uncertain. LPL Financial’s chief global strategist, Quincy Krosby, cautioned that market volatility might persist.
“The lingering question now is whether the concerns that pushed the market into a cascade of selling are alleviated,” Krosby said.
“Pockets of volatility are expected to continue as August and September give way to a calmer seasonal period, however, it’s important to remember pockets of opportunity are always on the other side of the storm.”
Vital Knowledge founder Adam Crisafulli offered a glimmer of hope regarding the second-quarter earnings season.
“We’ve had some earnings reports out in the past 12 hours that have been a little bit encouraging,” Crisafulli said on CNBC’s “Closing Bell: Overtime.”
“There has been a slowing and cooling of the economy, but corporate America is evolving in response to it and they’re generating reasonably healthy earnings.”
Looking ahead, investors will focus on upcoming earnings reports from Disney and CVS Health, set to release results before the market opens on Wednesday.
Crisafulli’s insights reflect a broader sentiment within the business community, highlighting the resilience and adaptability of companies during challenging economic times.
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