Equity futures fell on Wednesday overnight as the market is poised to expand a sudden sell-off amid concerns about increased speculative trading.
Dow Jones Industrial Average futures traded 120 points lower. The S&P 500 futures fell 0.7% and the Nasdaq 100 futures fell 0.8%.
Apple recorded the highest revenue, at $ 111.4 billion, in its first-quarter tax earnings report for fiscal year 2021. Sales for each product category increased by double-digit percentage points. However, the shares of the technology giant fell by 3%.
Tesla fell more than 3 percent in extended transactions after the electric car maker posted lower-than-expected earnings in the last quarter. The company also said it expects an average annual delivery increase of 50% in the future.
Wall Street suffered heavy losses on Wednesday, with the S&P 500 and Dow recording its worst day in October as speculative buying frenzy in sharply shortened stocks pushed investors to the limit. Some fear that hedge funds that are being squeezed could be forced to reduce their holdings to raise cash.
“Short leaks that cause implosion in some hedge funds join SPACs, IPOs and bitcoin as data points that support a market bubble thesis,” Scott Knapp, chief market strategist, said in an email. the CUNA Mutual Group. “This is a time of caution for investors.”
Trading volume exploded in the previous session, with 23.7 billion shares changing hands, marking the hardest trading day of at least 2007.
Video game retailer GameStop, a target of Reddit’s “wallstreetbets”, grew by 134% on Wednesday, bringing its January earnings to 1,744%. AMC Entertainment recorded an increase of over 300% only on Wednesday, recording the highest volume so far.
GameStop fell 7% in extended transactions, while AMC Entertainment fell 20%. Other very short-circuit names that gathered this week, including Bed Bath & Beyond and National Beverage, also fell after hours.
Facebook shares remained relatively flat in trading after the program, after the company warned that a reversal of pandemic trends could affect its advertising business. The social media company crossed the top and bottom line for the fourth quarter.
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