Traders work on the floor of the New York Stock Exchange (NYSE) on May 18, 2022 in New York City.
Spencer Platt | Getty Images
Stock futures plunged in overnight trading on Wednesday after the Dow Jones Industrial Average suffered its biggest one-day drop since 2020.
Dow Jones Industrial Average futures fell about 30 points. S&P 500 futures fell 0.1% and Nasdaq 100 futures lost 0.2%.
The after-hours moves came on the heels of a sharp sell-off in the market, with big box profits indicating that inflation was weighing on corporate profits.
Back-to-back quarterly reports from Target and Walmart showed higher fuel costs and restrained consumer demand, hurting results amid the highest inflation in decades.
The Dow Jones lost more than 1,100 points in the biggest decline in the average 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 decline since June 2020. The Nasdaq Composite fell 4.7%
“It continues the narrative that … we’re going to be significantly lower this year in equities before we find a bottom,” Guggenheim Partners director of global investments Scott Minerd told CNBC’s “Closing Bell: Overtime” on Wednesday. .
Wednesday’s selloff was wide as all 11 sectors of the S&P 500 closed. Consumer discretionary stocks were the hardest hit, down 6.6%.
Investors will get more earnings from companies to be analyzed through Thursday with companies like BJ’s Wholesale, Kohl’s, Applied Materials and Ross on deck.
The first unemployment claims should also be published Thursday morning.