Dow futures, S&P 500 tumbles after 30-stock average snaps 5-day winning streak during the regular session. On Tuesday, Dow futures slipped slightly in overnight trading.
Dow futures dropped 50 points, S&P 500 futures fell 0.1%, and Nasdaq 100 futures slipped 0.15%.
The major averages tumbled on Tuesday after retail sales declined. The Dow Jones Industrial Average shed 282 points, falling 4.3% in Home Depot’s stock.
The S&P 500 also dropped 0.7% saw its worst day since July 19. The Nasdaq Composite declined 0.9% as Facebook, Amazon, Apple and Google-parent Alphabet all closed lower.
On Tuesday, the Census Bureau said retail sales dipped down 1.1% in June. Car sales contributed to this decline. Economists anticipated retail sales to drop by 0.3% in July.
Retail sales excluding auto declined 0.4%, while analysts had expected a 0.2% slowdown.
On Tuesday, the small-cap benchmark Russell 2000 fell 1.2%.
Jim Paulsen, chief investment strategist at the Leuthold Group, said, “The stock market is way overdue for a correction, Covid cases continue to spike higher darkening economic reopenings, consumer data shockingly has collapsed recently — including consumer confidence last Friday and retail sales and homebuilders’ sentiment today — several stocks have stopped reacting positively to good earnings, inflation reports remain hot and Federal Reserve taper talk is everywhere.”
Target and Lowe’s reported before the bell, while Cisco Systems and Nvidia reported after the bell.
Stock trading app Robinhood unveiled its first earnings report on Aug. 18, its first such release as a publicly-traded company after the bell.