Dow Jones futures fell late Wednesday, along with S&P 500 futures and Nasdaq futures. The Dow Jones sank modestly Wednesday while the Nasdaq tumbled to fresh lows, but the stock market rally isn’t “all dead” yet.
The sell-off in growth stocks continued with the Nasdaq undercutting its Feb. 23 intraday low. Stay-at-home plays Amazon.com (AMZN), Zoom Video (ZM), Teladoc Health (TDOC), Datadog (DDOG) and 2U Inc. (TWOU) all broke below long-term support. Tesla (TSLA) retreated to a 2021 closing low while Nvidia (NVDA), Roku (ROKU) and ServiceNow (NOW) tumbled decisively below their 10-week lines.
Marvell Technology (MRVL), Snowflake (SNOW), Okta (OKTA) and Splunk (SPLK) headlined earnings late Wednesday. But all of these tech stocks were breaking down or broken heading into quarterly results, falling sharply on Wednesday.
Marvell earnings were in line and guidance mixed. Snowflake reported strong revenue growth while Okta and Splunk beat views. Okta stock tumbled overnight on a $6.5 billion acquisition. Marvell fell sharply while SNOW stock rose slightly. Splunk stock, which is at 10-month lows, rose solidly.
Dow Jones Futures Today
Dow Jones futures fell 0.3% vs. fair value. S&P 500 futures retreated 0.5% and Nasdaq 100 futures fell 0.7%.
Coronavirus cases worldwide reached 115.76 million. Covid-19 deaths topped 2.57 million.
Coronavirus cases in the U.S. have hit 29.45 million, with deaths above 531,000.
Stock Market Rally Wednesday
The stock market rally sold off, closing at session lows. Real economy names held up while tech giants retreated and speculative names sold off.
The Dow Jones Industrial Average fell 0.4% in Wednesday’s stock market trading after being slightly positive for most of the session. Boeing stock was a key Dow winner, but Apple (AAPL) and Microsoft (MSFT) weighed on blue chips. The S&P 500 index slumped 1.3%, back below its 21-day line but holding just above its 50-day. The Nasdaq composite tumbled 2.7%, knifing through its 50-day line and undercutting its Feb. 23 low.
The 10-year Treasury yield rose 6 basis points to 1.47% after pulling back in recent days. The strong uptrend in long-term sovereign bond yields has pressured the stock market rally, especially speculative growth.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) skidded 3.5%, while the Innovator IBD Breakout Opportunities ETF (BOUT) slumped 3.25%. The iShares Expanded Tech-Software Sector ETF (IGV) retreated 4.1%, with Zoom Video and NOW stock notable components. The VanEck Vectors Semiconductor ETF (SMH) lost 3.15%. NVDA stock is a top SMH holding.