U.S. stock futures dipped late Wednesday following a chaotic day on Wall Street. The Dow Jones, S&P 500, and Nasdaq futures all edged lower in after-hours trading.
The sharp movements were largely driven by a deep sell-off in speculative assets, especially those tied to Bitcoin, which plunged sharply during the trading session.
Also grabbing investor attention were disappointing earnings projections from Cisco, alongside developments in the Ford F-150 Lightning launch and continued volatility in the cryptocurrency market.
Cisco Shares Slide on Weak Guidance
Tech giant Cisco Systems saw its shares drop by 5.62% in extended trading after the company released earnings guidance that fell short of analysts’ expectations.
The networking hardware firm’s outlook raised concerns among investors already nervous about the market’s direction.
Bitcoin Crash Triggers Market Panic
The market turbulence was sparked by Bitcoin’s plunge of nearly 30%, touching just over $30,000 Wednesday morning before rebounding later in the day.
The sharp drop wiped out billions in value and sent crypto-related stocks into a tailspin.
High-profile names like Tesla (TSLA), Coinbase (COIN), and MicroStrategy (MSTR) all suffered steep intraday losses, pulling down broader indexes.
Coinbase hit a new low after experiencing a service outage.
Despite recovering from the day’s lows, Bitcoin remained significantly below its Tuesday levels.
The decline follows recent criticism of Bitcoin by Tesla CEO Elon Musk, though Musk later tweeted support, which may have helped stabilize the market.
Indices Rebound But Still End Lower
Despite morning losses, major U.S. indexes managed to recover much of the ground lost. The S&P 500 fell as much as 1.6% but closed the day down just 0.3%.
The Dow Jones Industrial Average finished 160 points lower after being down more than 580 points at one point.
The Nasdaq Composite, heavily weighted in tech stocks, reversed a 1.7% decline to end flat.
All three indexes posted their third-straight daily losses, highlighting investor unease.
Commodity Stocks, Airlines, and Financials Retreat
Commodity-related sectors—including mining, metals, and fertilizers—slid on falling prices of oil, copper, lumber, and other resources.
Airline stocks, which had previously shown strength, also declined. Financials remained weak throughout the session.
Fed Signals Potential Shift in Bond Purchases
Investors also digested hints from the Federal Reserve that policymakers are considering tapering bond purchases.
While the news led to higher Treasury yields and a stronger U.S. dollar, it had limited impact on equities, which were already under pressure from other factors.
Selective Buy Signals Flash, But Caution Remains
Despite the market turbulence, a few buy signals emerged from Target (TGT), Facebook (FB), Alphabet (GOOGL), Maravai LifeSciences (MRVI), and Trip.com (TCOM).
However, analysts advise caution, warning that the current market conditions are not favorable for new investments.
