U.S. stock futures were trending in the green in the early morning hours of Tuesday as investors look for positive results through the last leg of the earnings season, amid growing concerns about inflation.
Futures contracts tied to the Dow Jones Industrial Average (DJIA) were up by 1.01% as of 5:27 a.m. EST, Tuesday. Meanwhile, the S&P 500 (SPX) futures grew 1.17%, whereas the Nasdaq 100 (NDX) futures edged 1.69% higher.
The movements came after the S&P 500 dropped sharply by 3.2% at the end of the regular trading hours on Monday, accompanied by a 3.98% dip in Nasdaq 100 and a 1.99% loss in the Dow index. Having declined 17% from its 52-week high, the S&P 500 is on the verge of entering bear territory, while the Dow is already in correction territory with more than a 12% drop from its 52-week high.
Moreover, tech stocks bore the brunt of the market concerns related to the raging inflation, which was reflected in the dip in the tech-heavy Nasdaq 100. Meta Platforms (FB) shed 3.7%, Alphabet (GOOGL) slipped 2.8%, and Tesla (TSLA) lost more than 9% of its valuation on Monday.
Also, the news of biotechnology company Novavax’s (NVAX) earnings falling short of Street estimates did not sit well with investors, despite reporting its first profitable quarter. Shares of the company nosedived 7.05% at Monday’s market close, and plummeted further by almost 20% in early morning trading on Tuesday.
However, entertainment company AMC Entertainment (AMC) reported its strongest first quarter in two years, leading to the stock to trend 5.4% higher on Tuesday morning.
Meanwhile, the benchmark 10-year Treasury yield surpassed 3%, its highest level in more than three years.
Peloton (PTON) and Fox (FOX) are scheduled to report earnings before markets open on Tuesday. Coinbase (COIN), Roblox (RBLX), RealReal (REAL), and Allbirds (BIRD) will report earnings after the markets close on Tuesday.
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