S&P 500 futures were flat in overnight trading Wednesday after the index posted a three-day losing streak.
S&P 500 futures rose 0.1%, Nasdaq 100 futures rose 0.3%, while Dow Jones Industrial Average futures fell 65 points, or about 0.2%.
In after-hours trading, Tesla shares rose more than 11% after the electric vehicle maker reported third-quarter earnings that beat analysts’ expectations. Tech giant International Business Machines fell about 3% as consulting revenue missed analysts’ estimates.
The Dow Jones Industrial Average ended Wednesday with its biggest one-day loss since early September, falling more than 400 points, or 0.96%. The S&P 500 fell 0.92%, and the Nasdaq Composite dropped 1.6%. Wednesday marked the third straight session of declines for both the Dow and the S&P 500.
The yield on the 10-year U.S. Treasury note has been on the rise this week, crossing the 4.25% threshold on Wednesday at a session high. The rise in yields has kept stocks under pressure recently.
Bespoke Investing Group co-founder Paul Hickey said he wouldn't read too much into the recent sell-off in stocks.
“It’s a tough day, but you just have to put it in perspective of what we’ve seen over the last six weeks,” Hickey told CNBC on Wednesday. “Part of that rally was driven by the fact that earnings — initially, the big banks — were very strong, and their stock price reactions were positive as well. It’s a tough day, but these days happen.”
Hickey warned that the market could see a slight pullback after the US presidential election in November. However, he noted that the market would find its footing after this expected pullback.
You might be ready for a phase of disappointment once the election comes around and you see the selling in response to the news. But I don't think it's going to be too bad. The overall backdrop for the market is very good in terms of breadth, earnings, the economy, and the Fed is supporting the market, he said.
More earnings are expected on Thursday. Companies due to report before the market opens include United Parcel Service, Honeywell, Northrop Grumman, Southwest Airlines and American Airlines.
