Dow Jones futures, as well as S&P 500 futures and Nasdaq futures, experienced a slight rise after hours. Costco Wholesale announced positive earnings, while Meta Platforms was set to unveil virtual reality hardware and artificial intelligence tools. On Tuesday, the stock market correction reached new lows, erasing the previous day’s gains. Additionally, the 10-year Treasury yield continued to rise to long-term highs. The Federal Trade Commission and 17 states filed an anticipated antitrust lawsuit against Amazon.com. Amazon stock fell as a result, along with other megacaps such as Alphabet, Microsoft, and Apple. Neurocrine Biosciences, Nov, Aflac, Regeneron Pharmaceuticals, Modine Manufacturing, and FedEx are stocks that are near their buy points. Costco stock, on the other hand, experienced a slight decline after beating earnings and revenue expectations. Meta Platforms, Nov, and Modine stock are among the stocks that showed relative strength and are included in various stock lists. Dow Jones futures rose 0.1%, accompanied by a 0.1% increase in S&P 500 futures and a 0.1% climb in Nasdaq 100 futures.
Meta Platforms is scheduled to hold the Meta Connect conference on Wednesday and Thursday, during which it will unveil its Quest 3 virtual-reality headset and new AI tools. The stock of the company dipped just below its 50-day moving average on Tuesday. The company has a cup-with-handle buy point of 312.87 to watch out for. The stock market correction intensified on Tuesday, with all major indexes hitting new lows. The Dow Jones Industrial Average fell 1.1% and slipped below its 200-day line, while the S&P 500 index dropped 1.5% and approached its 200-day line. The Nasdaq composite also fell 1.6%. Notable stocks such as Amazon, Alphabet, Microsoft, and Apple experienced declines as well.
Although the stock market is oversold in various ways, a short-term bounce may occur, considering the oversold conditions. However, it is difficult to anticipate a significant rebound in stocks without Treasury yields decreasing or at least stabilizing. The likelihood of a federal government shutdown on October 1st is increasing, although temporary funding remains possible. Currently, the stock market is experiencing a correction.
In terms of ETFs, growth ETFs such as the Innovator IBD 50 ETF and the iShares Expanded Tech-Software Sector ETF declined. The VanEck Vectors Semiconductor ETF, ARK Innovation ETF, ARK Genomics ETF, and SPDR S&P Metals & Mining ETF all experienced losses. Among sector ETFs, the U.S. Global Jets ETF, SPDR S&P Homebuilders ETF, Energy Select SPDR ETF, Health Care Select Sector SPDR Fund, Industrial Select Sector SPDR Fund, and Financial Select SPDR ETF all saw declines.
In terms of individual stocks, Neurocrine Biosciences, Nov, Aflac, Regeneron Pharmaceuticals, Modine Manufacturing, and FedEx all experienced fluctuations in their stock prices. These stocks are close to their respective buy points and should be monitored closely. Investors should exercise patience in the current market conditions and wait for clear signs of market strength. It is also important to keep watchlists up to date in order to take advantage of any potential market rally and to stay informed about market direction and leading stocks and sectors.