On Thursday night, U.S. stock futures showed minimal changes following the major indices' decline after a disappointing earnings forecast from retail giant Walmart. The Dow Jones Industrial Average futures saw a modest increase of 8 points, translating to less than 0.1%. Similarly, S&P 500 futures hovered near the flatline, while Nasdaq-100 futures experienced a slight rise of less than 0.1%.
During Thursday's regular trading session, the Dow Jones Industrial Average fell by 450.94 points, marking a 1.01% decline. The S&P 500 decreased by 0.43%, pulling back from its recent all-time highs, while the Nasdaq Composite dropped by 0.47%. Several factors contributed to the market's downturn, including Walmart's 6.5% stock dip, persistent inflationary concerns, and declines in Palantir's shares.
According to Art Hogan, the chief market strategist at B. Riley Wealth Management, Thursday's market fears might have been somewhat exaggerated. He suggested that the upcoming economic data releases on Friday, which include the latest purchasing managers' index (PMI) readings and January's existing home sales, could steer equities in a new direction by week's end.
Hogan remarked, "There's a chance that enough overall selling pressure might attract some margin hunters on Friday, potentially clawing back some of today's losses." He added, "I believe you'll get a sense tomorrow if investors feel that today's actions are overdone, particularly if the PMIs and existing home sales meet expectations."
On a week-to-date basis, the S&P 500 is poised for a slim gain of less than 0.1%, whereas the Nasdaq Composite is down by 0.3%. The Dow Jones is the underperformer among the indices, tracking for a 0.8% loss over the week. Hogan concluded that no single piece of economic data is likely to significantly shake the market's current trajectory.
