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Nasdaq futures fall after Tuesday’s sharp losses on equities

A trader works on the floor of the New York Stock Exchange (NYSE) in New York on April 14, 2022.

Brendan McDermid | Reuters

Nasdaq 100 futures fell Tuesday night after the major averages continued their divestments in April due to concerns about an economic downturn.

Dow Jones Industrial Average futures fell 18 points or 0.1 percent. The S&P 500 and Nasdaq 100 futures lost 0.5% and 1%, respectively.

Major technology stocks continued their decline in after-hours trading. Alphabet’s share price fell more than 4% after the company’s earnings. Shares for Meta Platform, which reported earnings on Wednesday, fell 4%.

Meanwhile, shares in Robinhood also fell more than 5% in expanded trading after the retail brokerage firm said it was cutting back on staff. The company cited “duplicate roles and job functions” after the rapid expansion last year.

Earlier in the day, the technology-heavy Nasdaq Composite fell further into bear market territory, losing 3.95% and reaching a new low in 52 weeks. The index is now around 23% from its highest. The Dow Jones Industrial Average fell 809.28 points, or 2.4%. The S&P 500 lost 2.8 pct.

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

These moves came as fears of an economic downturn prompted investors to drop technology stocks ahead of their first-quarter results. Investors feared similar explosions for Netflix earlier in the earnings season.

“It’s a high-volatility, low-volume market that cares about two things,” said Art Hogan, chief market strategist at National Securities. “One is, you know, Federal Reserve policy, and the other is China’s shutdowns and how long they last.”

Facebook parent Meta is set to report earnings on Wednesday, while Apple and Amazon report earnings on Thursday. T-Mobile, Boeing, PayPal and Ford also report earnings on Wednesday.

On the economic front, investors will keep an eye on the latest data on weekly mortgage applications, international trade and pending home sales.

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