Markets Set for Hefty Drop

By Baystreet Market Updates

U.S. stock index futures pointed to a lower open on Tuesday as a decline in Target shares pressured retailers, while the most popular technology stocks fell again.

Futures for the Dow Jones Industrials plummeted 297 points, or 1.2%, to 24,732, pointing to a loss of more than 250 points at the open. The Dow fell nearly 400 points in the previous session.

S&P futures dropped 31.75 points, or 1.2%, to 2,664.50, while the NASDAQ Composite faded 111.75 points, or 1.7%, to 6,560.25.

Target fell 9.5% in the pre-market after reporting weaker-than-expected earnings for the previous quarter. The company also posted lighter-than-forecast same-store sales, which is a key metric for retailers.

The decline sent other retailers negative. Kohl’s fell 7.7%, L Brands let go of 7.8%, and Macy’s jettisoned 2.6%.

Futures also fell as members of the popular “FAANG” trade — which is made up of Facebook, Amazon, Apple, Netflix and Alphabet — fell further into bear market. Facebook fell 1.9%, while Amazon, Apple and Netflix all dropped at least 2.5%. Alphabet’s stock dipped 1.5%.

On Monday, the FAANG members all closed down at least 20% from their one-year highs, pressuring the major indexes.

Overseas, in Japan, the Nikkei 225 slid 1.1% Tuesday, while in Hong Kong, the Hang Seng index plunged 2%

Oil prices lost 63 cents to $56.57U.S. a barrel.

Gold prices picked up $1.20 to $1,226.50U.S. an ounce.

This article provided by NewsEdge.