US Stock Futures Decline Amid Salesforce Revenue Miss and Weak Guidance

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US Stock Futures Fall as Salesforce Misses Revenue Expectations

Team FS

30/May/2024

Key Points:

US stock futures decline led by a sharp drop in Salesforce shares.
Dow futures fall 0.7%, while S&P 500 and Nasdaq 100 futures drop 0.4%.
Salesforce shares plunged 16% after missing revenue expectations and issuing weak guidance.

US stock futures fell on Thursday as a sharp decline in Salesforce shares weighed heavily on the indexes. Specifically, Dow futures dropped 0.7%, while S&P 500 and Nasdaq 100 futures were down about 0.4% each. This decline followed a significant plunge in Salesforce shares during extended trading, where the stock tumbled 16% after the company missed revenue expectations for the first quarter and issued weak guidance for the second quarter.

In addition to Salesforce, American Eagle Outfitters also saw a steep decline, tumbling 10% on lower-than-anticipated first-quarter revenue. These disappointing earnings reports added to the bearish sentiment in the market.

During regular trading on Wednesday, the Dow Jones Industrial Average fell 1.06%, the S&P 500 dropped 0.58%, and the Nasdaq Composite lost 0.58%. All eleven S&P 500 sectors ended lower, with energy, industrials, and materials sectors leading the declines.

The losses in the equity markets were exacerbated by rallying Treasury yields, with the benchmark 10-year US yields topping 4.6%. The strong US consumer confidence data for May and hawkish remarks from a Federal Reserve official also contributed to the negative market sentiment.

Investors are now looking ahead to more economic data and earnings reports scheduled for Thursday, which will provide further insights into the health of the US economy and corporate performance.

Despite the recent downturn, the main stock market index in the United States, the US500, has increased 482 points or 10.11% since the beginning of 2024, according to trading on a contract for difference (CFD) that tracks this benchmark index.

In summary, the sharp decline in Salesforce shares and other weak earnings reports have put significant pressure on US stock futures. Market participants are bracing for more economic data and earnings reports that will likely shape the market's direction in the coming days.

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US Stock Futures Fall as Salesforce Misses Revenue Expectations

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