Investing.com-- U.S. stock index futures rose slightly in evening deals on Wednesday, steadying after disappointing earnings from heavyweight technology stocks sparked deep losses on Wall Street.
Major technology stocks rose in aftermarket trade, seeing a measure of bargain buying after suffering steep losses over the past week. Positive earnings from South Korean memory chip maker SK Hynix Inc (KS:000660) also offered some positive signals on artificial intelligence-fueled demand.
But sentiment remained largely fragile, with uncertainty over the presidential race and an upcoming Federal Reserve meeting also keeping investors cautious.
Focus this week is also on second-quarter gross domestic product data, while the PCE price index- which is the Fed's preferred inflation gauge- is due on Friday.
S&P 500 Futures rose 0.2% to 5,483.0 points, while Nasdaq 100 Futures rose 0.3% to 19,261.75 points by 20:03 ET (00:03 GMT). Dow Jones Futures rose 0.2% to 40,188.0 points.
Wall St walloped by tech losses after Tesla, Alphabet earnings disappoint
Futures rose marginally after Wall Street clocked deep losses on Wednesday, as underwhelming earnings from heavyweights Alphabet Inc (NASDAQ:GOOGL) and Tesla Inc (NASDAQ:TSLA) rattled markets.
Tesla steadied in aftermarket trade from a 12.3% slump during the session, as its second-quarter earnings missed estimates. The electric car maker offered middling cues on its plans for full self driving and robotaxis, while investors were unimpressed by CEO Elon Musk flagging progress in developing a humanoid robot, “Optimus.”
Alphabet steadied from a 5% tumble, as signs of slowing advertising revenue and increased expenditure on AI largely offset an earnings beat.
Analysts were also concerned that the internet giant’s earnings could herald a similar trend in its peers, especially amid fears that the increased spending on AI now appeared to be providing slowing returns.
Losses in the two had spilled over into their peers on Wednesday, dragging Microsoft Corporation (NASDAQ:MSFT) and Apple Inc (NASDAQ:AAPL) down 3.6% and 2.9%, respectively. AI darling NVIDIA Corporation (NASDAQ:NVDA) slumped 6.8%, although all three stocks rose marginally in after-hours trading.
Tech was already nursing steep losses over the past weeks, as the sector saw heavy profit-taking after hype over AI drove a major melt-up in valuation over the past year. Expectations of lower interest rates- on which the Fed is set to provide more cues next week- also sparked a rotation into more economically sensitive sectors.
The NASDAQ Composite slumped 3.6% to 17,345.84 points on Wednesday, largely leading losses among its peers. The S&P 500 fell 2.3% to 5,427.13 points, while the Dow Jones Industrial Average fell 1.3% to 39,853.87 points.
Chipotle, IBM advance on strong Q2; Ford slumps
Among major aftermarket movers, Chipotle Mexican Grill Inc (NYSE:CMG) rose 3% after clocking stronger-than-expected earnings for the second quarter. The fast casual Mexican restaurant chain logged strong comparable restaurant sales in the quarter.
IBM (NYSE:IBM) rose 2.4% after increased interest in AI helped the tech consulting firm log stronger-than-expected quarterly earnings.
But on the other hand, Ford Motor Company (NYSE:F) slumped over 12% after clocking disappointing earnings, as automobile sales slowed sharply amid decreased consumer spending.
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