Apple CEO Tim Cook delivers the keynote address during the 2020 Apple Worldwide Developers Conference (WWDC) at Steve Jobs Theater in Cupertino, California, June 22, 2020.
Brooks Kraft | Apple, Inc. via Reuters
U.S. stock futures fell in overnight trading Thursday after some of the technology heavyweights came under pressure following their quarterly reports.
Futures on the Dow Jones Industrial Average dropped 150 point. The S&P 500 futures fell 0.7% and the Nasdaq 100 futures slid 1.0%..
Shares of Apple fell more than 4% in extended trading after the tech giant reported a 16% decline in iPhone sales and failed to offer investors any guidance for the quarter ahead. Amazon dipped 1.5% even after the e-commerce giant reported blowout third-quarter results with a big beat on the top line.
Wall Street staged a modest rebound on Thursday on the back of better-than-expected U.S. gross domestic product and jobless claim data. The 30-stock Dow gained more than 100 points for its first positive day in five, while the S&P 500 rose 1.2% to snap a three-day losing streak. The tech-heavy Nasdaq Composite climbed 1.6%.
Still, major averages are on pace to post their worst weekly performance in months. The Dow is down 5.9% week to date, on pace for its worst week since March 20. The S&P 500 has fallen 4.5% this week, headed for its worst week since June 12.
Volatility remained elevated as investors grappled with rising new cases of the coronavirus in the U.S. and abroad. The Cboe Volatility Index (VIX), also known as Wall Street’s “fear gauge,” touched a high of 41.2 Thursday, its highest level since June 15.
“Pre-election market volatility is not unusual and has arisen around swirling questions about elections, COVID-19, and economic and earnings growth,” Paul Christopher, Wells Fargo’s head of global market strategy, said in a note Thursday. “This indigestion triggered declines in the S&P 500 Index.”
The Dow and the S&P 500 are also set to post their second straight month of losses as Wall Street wraps up a turbulent October. The 30-stock average is down 4% this month, and the S&P 500 has lost 1.5%. The Nasdaq outperformed, rising just 0.2% in the same period.
Shares of Alphabet soared more than 7% in extended trading after the Google parent company posted quarterly results that topped Wall Street expectations. Meanwhile, Twitter dropped more than 14% after the social media company reported user growth that fell short of expectations.
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