US stock futures drift lower as rebound stalls, tech weakness persists

Investing.com-- U.S. stock index futures fell in evening deals on Wednesday after a Wall Street rebound ran out of steam, while weakness in technology stocks persisted as major chipmakers were pressured by middling earnings.

Losses in futures followed a volatile session on Wall Street, where stock benchmarks ended lower despite a strong start to the day. U.S. stock indexes were nursing steep losses over the past week amid heightened concerns over a recession. 

S&P 500 Futures fell 0.4% to 5,208.50 points, while Nasdaq 100 Futures fell 0.5% to 17,873.0 points by 19:16 ET (23:16 GMT). Dow Jones Futures fell 0.2% to 38,822.0 points. 

Tech sees extended losses after Super Micro tumble 

Major technology stocks saw extended losses in aftermarket trade, with Super Micro Computer Inc (NASDAQ:SMCI) in the lead after it clocked underwhelming earnings for the June quarter. Super Micro fell 2% after plummeting 20% during the session.

The firm’s underwhelming earnings added to doubts over just how much demand the artificial intelligence will fuel, and sparked extended losses in chipmaking stocks. 

Market darling NVIDIA Corporation (NASDAQ:NVDA) fell 1.2%, while Super Micro peer Dell Technologies Inc (NYSE:DELL) slid over 6%.

Losses in chipmakers also soured already weak sentiment towards broader tech stocks, with majors such as Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc (NASDAQ:GOOGL) and Apple Inc (NASDAQ:AAPL) losing between 0.7% and 1.2% in aftermarket trade.

A rout in technology stocks was a key driver of Wall Street’s losses in recent weeks, as middling earnings from the biggest stocks in the sector sparked heavy profit-taking. Expectations of interest rate cuts also saw investors pivot into more economically sensitive stocks, although this trade was also stymied by fears of a U.S. recession.

Wall Street nurses losses as rebound stalls 

Wall Street indexes closed lower on Wednesday as a rebound from two and three-month lows largely stalled. 

The S&P 500 fell 0.8% to 5,199.50 points, while the NASDAQ Composite fell 1% to 16,198.86 points. The Dow Jones Industrial Average fell 0.6% to 38,763.45 points. 

All three indexes were nursing steep losses over the past few weeks, with the Nasdaq having entered correction territory on Monday. 

Losses were sparked by increasing fears of a recession, following a slew of weak readings on the labor market and business activity. A slew of disappointing earnings also battered sentiment. 

Weak earnings continued to trickle in. Warner Bros Discovery Inc (NASDAQ:WBD) slid 11% in aftermarket trade on disappointing second-quarter earnings, while Walt Disney Company (NYSE:DIS) fell nearly 2%, extending losses from the session after it also logged weak earnings. 

Bumble Inc (NASDAQ:BMBL) plummeted 30% after it cut its annual revenue forecast.