Stock futures fell slightly in overnight trading after a difficult start to October and the final quarter of 2024.
By 7:00 pm ET (11:00 pm GMT) futures tied to the Dow Jones Industrial Average declined and S&P 500 lost 0.2% apiece while Nasdaq-100 futures slipped by 0.3%.
Nike shares dropped around 7% in after-hours trading after the company withdrew its full-year guidance, anticipating a change in leadership with Elliott Hill set to take over as CEO on 14 October.
Nike also reported mixed fiscal first-quarter results, beating earnings expectations with 70 cents per share but missing revenue estimates, reporting $11.59 billion against an expected $11.65 billion. The company saw a 10% year-over-year decline in sales, contributing to the post-market slide in its stock.
The major U.S. indices closed lower on Tuesday as heightened geopolitical tensions in the Middle East undermined risk sentiment. The Dow Jones Industrial Average dropped 0.4%, and the S&P 500 and Nasdaq Composite declined by 0.9% and 1.5%, respectively.
Oil prices surged, and the CBOE Volatility Index (VIX) spiked after Iran launched ballistic missiles at Israel, further escalating the ongoing conflict in the Middle East.
Technology stocks were the worst performers on Tuesday, with the S&P 500’s information technology sector shedding 2.7%, its sharpest drop in nearly a month.
Megacaps such as Apple, Nvidia, Microsoft, and Tesla led the sector's decline. US Treasury yields fell as investors turned to safer assets.
Ahead of Friday’s key nonfarm payrolls report, Wall Street will focus on the ADP Employment Survey, due Wednesday, for insights into private payroll trends. Friday’s jobs report could be pivotal in determining the Federal Reserve’s next move as it continues its rate-cutting cycle.
