Dow Jones futures fell slightly overnight, along with S&P 500 futures and Nasdaq futures. The stock market rally struggled Wednesday as weak economic data raised recession fears for a second straight session.
The major indexes still don’t look too bad, with the Nasdaq sliding but the Dow Jones rising.
But once again, declining stocks decisively beat winners. Once again, many of those losers fell hard. But on Wednesday, a lot of more of those big losers were leading stocks, such as On Holding (ONON), MarketAxess (MKTX) and PagerDuty (PD). C3.ai (AI) sold off for a second session, with the AI stock now staging a massive, outside week to the downside.
Others, including many chip names, declined solidly, now showing more chart damage after relatively modest retreats Tuesday.
Tesla (TSLA) skidded for a third straight day, triggering the automatic sell rule.
Megacap techs such as Apple (AAPL), Microsoft (MSFT), Google parent Alphabet (GOOGL), Meta Platforms (META) and Nvidia (NVDA) all fell.
Meanwhile, bank stocks came under more pressure. Western Alliance Bancorp (WAL) plunged, leading a retreat in regional banks, though they pared losses in the afternoon. Charles Schwab (SCHW) hit a two-year closing low. While bank deposits may be relatively safe, the bigger issue now may be long-term bank profitability as well as lending curbs that rapidly slow the economy.
Medical names are looking relatively strong, along with other defensive growth or defensive plays.
PagerDuty stock, On Holding, Meta and Nvidia are on IBD Leaderboard. Microsoft and Google stock are on the IBD Long-Term Leaders list. ONON stock is on the IBD 50.
Despite relatively benign action in the major indexes, the weakness in growth and other leading stocks is concerning. Investors should be looking to protect profits and cut losses.
Dow Jones Futures Today
Dow Jones futures fell 0.1% vs. fair value. S&P 500 futures slipped 0.2% and Nasdaq 100 futures declined 0.4%.
The 10-year Treasury yield edged up to 3.3%.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily…