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Stock futures fell overnight on Wednesday as the market is poised to extend a sell-off amid concerns over intensifying speculative trading.
Futures contracts on the Dow Jones Industrial Average are trading 120 points lower. S&P 500 futures fell 0.7% and Nasdaq 100 futures fell 0.8%.
Apple achieved its highest revenue ever at $ 111.4 billion in its fiscal 2021 first quarter earnings report. Sales of each product category increased by two percentage points. figures. Shares of the tech giant, however, fell 3%.
Tesla fell more than 3% in extended trading after the electric car maker posted worse-than-expected profits for the last quarter. The company also said it expects average annual growth in shipments of 50% going forward.
Wall Street suffered big losses on Wednesday, with the S&P 500 and Dow having their worst day since October, as the frenzy of speculative buying in heavily sold stocks kept investors on edge. Some fear that hedge funds will be forced to reduce their holdings of equities to raise cash.
“Short imploding pressures in some hedge funds join PSPCs, IPOs and bitcoin as data points supporting a market bubble thesis,” said Scott Knapp, chief market strategist at CUNA Mutual Group, in an email. “Yhis is a time of caution for investors.”
Trading volume exploded in the previous session with 23.7 billion shares changing hands, marking the heaviest trading day since at least 2007.
Brick-and-mortar video game retailer GameStop, a target on the Reddit “wallstreetbets” chat room, soared 134% on Wednesday, pushing its January gains to a whopping 1.744%. AMC Entertainment jumped over 300% on Wednesday alone, registering its highest volume on record.
GameStop fell 7% in extended trading, while AMC Entertainment fell 20%. Other highly courted names that had rallied this week, including Bed Bath & Beyond and National Beverage, also fell after hours.
Facebook shares have been relatively flat after hours after the company warned that a reversal in pandemic trends could hurt its advertising business. The social media company has beaten up and down for the fourth quarter.
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