Market Update: U.S. Futures Down, American Airlines and CAVA Group Decline, Robinhood Gains, Earnings Reports Awaited

The U.S. futures market took a hit on Wednesday morning following the Nasdaq Composite reaching a new record high the day before. The Nasdaq Composite closed 0.6% higher, driven by a significant 7% increase in Nvidia stock. However, futures for the Nasdaq 100, S&P 500, and Dow Jones Industrial Average were all down by around 0.5% at 4:23 a.m. EST.

In after-hours trading, American Airlines stock plummeted over 6% after the company slashed its revenue and earnings outlook for the second quarter. CAVA Group also saw a decline of 2.6% despite reporting better-than-expected results for the first quarter of Fiscal 2024. On a positive note, Robinhood gained 4% on news of a $1 billion share buyback plan.

Several companies are set to report their quarterly earnings today, including Abercrombie Fitch, Bank of Montreal, Advance Auto Parts, American Eagle, Salesforce, C3.ai, Okta, Stratasys, Agilent, HP, and UiPath. On the economic front, no major reports are scheduled for release today.

The U.S. 10-year treasury yield was up, hovering around 4.56%, while WTI crude oil futures trended higher near $80.34 per barrel. In Europe, indices opened lower as traders await key inflation data for Germany.

In Asia-Pacific markets, indices traded mixed amid concerns about rising global bond yields and hawkish signals from the U.S. Federal Reserve. Chinese stocks saw gains after the IMF raised China’s growth forecast for 2024 due to strong first-quarter data and supportive policy measures. The Shanghai Composite and Shenzhen Component indices rose, while the Hang Seng index in Hong Kong and Japan’s Nikkei and Topix indices closed lower.

Overall, the global markets are experiencing a mix of ups and downs, with investors closely monitoring economic data and corporate earnings reports for further insights.