Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., October 26, 2023.
Brendan Mcdermid | Reuters
U.S. stock futures inched higher on Thursday night after the Nasdaq Composite slipped further into correction territory.
Nasdaq 100 futures climbed 0.5%. Futures tied to the S&P 500 advanced 0.3%, while Dow Jones Industrial Average futures rose 65 points, or 0.2%.
In after-hours action, Amazon added more than 4% after the e-commerce giant trounced analysts’ expectations for revenue and earnings in the third quarter. Ford stock dropped 4% after the company missed third-quarter earnings expectations and pulled its guidance for the year, citing the UAW strike.
During Thursday’s regular trading, the tech-heavy Nasdaq Composite shed 1.76%. The action comes after the index slid into correction territory on Wednesday. The Nasdaq is now down more than 12% since its high close for the year in July.
The S&P 500 ended the day 1.18% lower — 9.8% off its closing high for the year in July and teetering dangerously close to correction territory. The Dow shed 251.63 points, or 0.76%, seeing its sixth negative session in seven.
Further downside could be ahead for the market, rather than a year-end rally, according to Sonia Meskin, head of U.S. macro at BNY Mellon Investment Management. “We’re actually a bit less sanguine on equities,” she said on CNBC’s “Closing Bell.” “We think around 4,000 for the S&P [year end] is our central expectation.” She noted that there is some uncertainty around this view, however.
On a weekly basis, the 30-stock Dow is down about 1%, while the S&P 500 is off 2%. The Nasdaq is down about 3% and on pace for its third straight losing week.
Investors are looking ahead to what could be the next catalyst for stocks on Friday: the personal consumption expenditures reading for September. The PCE is the Federal Reserve’s preferred inflation gauge. Economists are calling for a core PCE increase of 0.3% in September, and a year over year increase of 3.7%, according to Dow Jones.
In terms of earnings, Chevron and Exxon Mobil are set to report earnings Friday before the bell.