U.S. stock index futures were lower during overnight trading Thursday following a disappointing earnings report from Netflix, building on the major averages' declines during regular trading.
Futures contracts tied to the Dow Jones Industrial Average shed 37 points. S&P 500 futures were down 0.33%, while Nasdaq 100 futures declined 0.74%.
Shares of Netflix tumbled 19% during extended trading on Thursday after the company's fourth-quarter earnings report showed a slowdown in subscriber growth. Peloton, meantime, plunged 23.9% during regular trading after CNBC reported that the company is temporarily halting production of its fitness products.
During regular trading, the Dow shed 313 points, or 0.89%. At one point during the session, the 30-stock benchmark was up more than 450 points. A similar reversal played out for the other major averages. The S&P declined 1.1% after earlier advancing 1.53%. The Nasdaq Composite ended the day with a loss of 1.3%, reversing a prior move that had the tech-heavy index up 2.1%.
«The market has been flashing faulty signals for the past few weeks and it seems as if the broader indices are finally breaking down,» said Scott Redler of T3 Live. The S&P 500 closed below 4,500 on Thursday for the first time since October 18, which Redler said is important from a technical standpoint and «opens the door for a targeted move to at least 4,320, which would take the S&P down 10%.»
Thursday's slide puts the Nasdaq Composite further in correction territory — more than 10% below its November record — as rising rates pressure technology stocks since future profits begin to look less attractive.
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