Stocks attempt to rebound after Nasdaq's most significant drop since 2020 as Dow futures gain more than 100 points

Stocks attempt to rebound after Nasdaq's most significant drop since 2020

April 28, 2022: -U.S. stock futures bounced Wednesday as the market attempted to recover from April’s technology-led sell-off a day after the Nasdaq Composite posted a new low for the year.

Futures tied to the Dow Jones Industrial Average rose about 170 points or 0.5%. S&P 500 futures gained 0.1%.

Nasdaq 100 futures were marginally lower, giving up gains after being higher earlier Wednesday morning.

“We remain cautious on rallies here,” BTIG’s Jonathan Krinsky said to clients. “There still hasn’t been a full-scale washout, in our view, and trends remain to the downside. This means small rallies don’t do much other than alleviate short-term oversold conditions.”

Microsoft’s shares jumped more than 3% in premarket trading after the company beat analyst expectations on the top and bottom lines. The company also issued forward revenue guidance exceeding analyst forecasts.

However, Google parent Alphabet’s earnings results missed consensus estimates. Management warned on the conference call of another potentially weak quarter ahead. Alphabet shares fell about 4% premarket.

“We’re trying to find a place of stability,” Kari Firestone, chairman and CEO of Aureus Asset Management, told CNBC’s “Squawk Box.” “We need to see a few more names come in with solid, reliable, and sustainable earnings so investors can get back on board.”

The tech-heavy Nasdaq Composite has dropped further into the bear market territory, losing 3.95% on Tuesday and hitting a fresh low. That was its most significant daily loss since September 2020. The index is now sitting roughly 23% off its high.

The S&P 500 on Tuesday lost 2.8% for its worst performance since March and closed below a critical support level in 4200. The Dow Jones Industrial Average shed 809.28 points or 2.4%.

In April, the S&P 500 was down 7.8%, the Nasdaq lost 12.2%, and the Dow declined 4.2%.

“The confluence of persistent inflation, Fed tightening, the war in Ukraine, and China’s zero-Covid policy lockdowns has manifested in tenacious headwinds for investors in April,” Art Hogan, National Securities chief market strategist, said.

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