Traders work at the New York Stock Exchange (NYSE) in New York City, U.S., on February 29, 2024.
Brendan McDermid | Reuters
Futures linked to the Nasdaq 100 rose Tuesday night, following a sharp sell-off in the three major averages.
Nasdaq 100 futures rose 0.2%. S&P 500 futures rose 0.05% and Dow Jones Industrial Average futures rose 19 points, or 0.05%.
In extended trade, Strike crowd shot up 25% in a top and bottom line rhythm for the final quarter, as well as strong guidance for the full year. Nordstrom fell 10% after warning possible sales declines in 2024.
The move comes after all three major averages posted a second straight day of declines. He Dow fell 404.64 points, or 1.04%. He S&P 500 fell 1.02%, and the Nasdaq Composite fell 1.65%.
Investors dumped large-cap tech names, fueling Tuesday's losses and posting the worst day since Jan. 2 for the tech sector. Apple The stock fell nearly 3% according to a report from Counterpoint Research, which said iPhone sales in China fell 24% in the first six weeks of 2024. microsoft fell about 3%, dragging down the broader market.
"The market is very resilient to a lot of different news," said Jay Hatfield, founder and CEO of Infrastructure Capital Advisors. He added that "it's really just that tech stocks are melting and everything else is recovering, so it's more of a rotational market than a straight bear market."
On Wednesday, investors will be watching Testimony from Federal Reserve Chairman Powell before the House Financial Services Committee. They will seek greater clarity on the central bank's stance on monetary policy and look for clues about the pace and timing of planned interest rate cuts this year.
The central bank leader will speak before the Senate Banking Committee on Thursday.
While the market is likely to react to Powell's comment, Hatfield believes his comments should not surprise investors.
"In a market with limited information flow, this is going to dominate trading, but it is already heavily foreshadowed," he said.
