U.S. Stock Markets Drop After S&P 500 Ends Lower

U.S. Stock Markets Drop After S&P 500 Ends Lower

U.S. stock markets drop after S&P 500 ends lower. On Wednesday, stock futures tumbled following the S&P 500′s rally that reached fresh record.

 Dow futures declined 30 points. S&P 500 futures dropped 0.15% and Nasdaq 100 futures also tumbled 0.24%.

Software giant Salesforce’s shares jumped 2% in extended trading following the fiscal second-quarter earnings report and forward guidance that exceeded analysts’ expectations. Ulta Beauty surged 6% in after-hours trading on strong results.

On Wednesday, the Dow Jones Industrial Average rose 39 points. The S&P 500 traded record high on 0.22%. The economic reopening like airlines, cruise lines, and financials led to the gains. On the same day, the 500-stock average surpassed the 4,500 thresholds but ended below that level.

The Nasdaq Composite jumped 0.15%, also marking a record close.

The yield on the benchmark 10-year Treasury edged higher at 1.352% Wednesday, reaching its highest level since earlier in the month when it yielded as much as 1.364%.

“The 10-year Treasury bond yield has continued rising in recent days and exploded higher in [Wednesday’s] trading, sending a strong message that the Delta variant of Covid may be peaking in the U.S. which should improve confidence, restart economic reopenings, and drive investment flows toward small caps and cyclicals,” said Jim Paulsen, chief investment strategist at the Leuthold Group.

The Federal Reserve is set to purchase at least $120 billion of bonds per month to keep longer-term interest rates low and encourage more borrowing and spending. Chairman Jerome Powell prepared remarks on Friday.

Several technology giants report quarterly earnings on Thursday including Dell Technologies, Gap, HP, and Abercrombie & Fitch.