Stock futures trade more than 300 points lower after winding up best month in decades. In Friday’s early morning trade, Stock futures fell as Wall Street posted its best month in 33 years.
Dow Jones Industrial Average futures fell 346 points, signaling an opening drop of about 307 points on Friday. S&P 500 and Nasdaq 100 futures also dropped on Friday.
Apple reported revenue and profit significantly higher than analyst’s expectations. But the company posted flat revenue growth. In addition, due to uncertainty over the coronavirus outbreak, the tech giant failed to offer guidance for the quarter ending in June. The company reported more than a 2% drop during after-hours trading.
E-commerce giant Amazon also fell 4.8% in after-hours trading as it revealed its plan of spending all its second-quarter profits on its coronavirus response. The company also reported that its first-quarter profit failed to meet analyst’s expectations. In April, the e-commerce behemoth traded around 27% while Apple added 15.3%.
S&P 500 surged 12.7% in April, showing its third-largest monthly gain since World War II. The Dow also gained 11.1%. The Nasdaq Composite soared 15.5% in the same month, notching its biggest one-month gain since June 2000.
“The sharp relief rally in equities has now moved ahead of underlying fundamentals, leaving room for near-term disappointments,” strategists said. “Many authorities are looking to reopen their economies but doing so safely and to near previous output levels will require a series of medical breakthroughs and widespread distribution of the treatment.”