Stock futures were lower in early morning trading on Thursday after the Dow Jones Industrial Average experienced its biggest one-day drop since 2020.
Futures on the Dow Jones Industrial Average fell 265 points, or 0.84%. S&P 500 futures dropped 1.24% and Nasdaq 100 futures slipped 1.5%.
The moves after hours came following a steep market sell-off on Wednesday as big-box retail earnings indicated that inflation was taking a bite out of corporate profits.
Back-to-back quarterly reports from Target and Walmart showed higher fuel costs and restrained consumer demand hurting results amid the hottest inflation in decades.
The Dow shed more than 1,100 points in the average’s biggest decline since June 2020. The blue-chip average closed at its lowest level since March 2021. The S&P 500 lost about 4%, also its worst drop since June 2020. The Nasdaq Composite fell 4.7%
“This is continuing the narrative that … we’re going to be meaningfully lower this year in stocks before we find a bottom,” Guggenheim Partners Global Chief Investment Officer Scott Minerd told CNBC’s “Closing Bell: Overtime” on Wednesday.
The sell-off Wednesday was broad with all 11 S&P 500 sectors closing down. Consumer discretionary stocks were hardest hit, down 6.6%.
Investors will get more corporate earnings to parse through Thursday with companies like BJ’s Wholesale, Kohl’s, Applied Materials and Ross on deck.
Initial jobless claims are also slated for release Thursday morning.