Live updates of the stock market news: May 24, 2022

US stock futures stumbled during early trading on Tuesday, putting the S&P 500 back on track toward a bear market.

Futures linked to the benchmark were down 1.2%, and futures on the Dow Jones Industrial Average lost 200 points. Nasdaq futures fell 1.6%.

The moves extend a series of sharp swings in stocks, but build on a broader downtrend amid months of selling on Wall Street. Monday’s close marked only the 13th time out of 98 trading days this year, with the S&P 500 closing in positive territory, according to data from Bespoke Investment Group.

The downturn in stock futures early Tuesday was spurred by renewed pressure in technology stocks after Snap Inc. (SNAP) CEO Evan Spiegel lowered the company’s forecast, citing rising inflation and interest rates, supply chain restrictions and labor disruptions. Shares of Snap plunged 30% in extended trading.

The social media giant is the latest among a growing number of US companies to lower their outlook amid concerns that macroeconomic pressures will weigh on margins. Last week, a series of disappointing profits from major retailers confirmed fears that inflation and ongoing supply chain problems are hitting corporate balance sheets.

“There would certainly be some payback from the pandemic-induced increase in earnings that many companies have experienced, but that payback could be greater than initially thought,” said Brian Jacobsen, senior investment strategist at Allspring Global Investments in an emailed note. “Businesses are dealing with higher input costs, consumers suffering from high prices and shifting spending patterns.”

During Q1 earnings season, 338 of the 460 companies in the S&P 500 that have reported results so far mentioned the term “supply chain” in investor conversations — the third-highest number of times since at least 2010, research found. from FactSet. With results this week from consumer names like Macy’s (M), Dick’s Sporting Goods (DKS) and Ulta Beauty (ULTA), Wall Street is bracing for more bad news.

A series of economic data is also in line for investors through Friday, with a second estimate of US GDP for the first quarter expected later this week, along with a new reading of monthly personal consumption expenditure (PCE). , the inflation rate preferred by the Federal Reserve.

8:30 a.m. ET: Abercrombie Shares Drop After Gains

Shares of Abercrombie & Fitch (ANF) fell a whopping 25% in pre-market trading after the company lowered its full-year forecast in its latest quarterly report.

For the full year 2022, the company now expects revenue growth to fall within a range of flat to just 2%, down from a previous forecast for revenue growth of 2%-4%. In lowering its forecast, the company cited the “adverse impact of foreign exchange and a presumed inflationary impact on consumer demand”.

After a 4% sales increase in the first quarter, ANF expects second quarter sales to fall in the “low single digit” compared to the previous year. The company attributed this drop to the impact of COVID-related lockdowns in China and the negative effect inflation is having on consumer habits.

“Looking ahead, we expect higher costs to remain a headwind until at least the end of the year,” CEO Fran Horowitz said in the company’s results release.

“We expect to see freight deductions in the fourth quarter as we saw an increase in air consumption last year as a result of the shutdown in Vietnam. We will continue to tightly manage costs and are determined to find opportunities to offset these costs while also providing strategic investments in marketing, technology and our customer experience, which should drive sustainable long-term sales growth.”

7:17 a.m. ET: Futures point to lingering losses after Snap slashes prediction

Here’s where stock futures were in pre-market trading on Tuesday:

  • S&P 500 futures (NL=F: -41.00 (-1.03%) to 3,930.75

  • Dow futures (YM=F: -200.00 (-0.63%) to 31,639.00

  • Nasdaq futures (NQ=F -195.50 (-1.62%) to 11,839.75

  • rough (CL=F: +$0.41 (+0.37%) to $110.70

  • Gold (GC=F: +$8.50 (+0.46%) to $1,856.30 per ounce

  • 10-year treasury (^TNX: +7.2 bps for 2.8590% yield

NEW YORK, NEW YORK – MAY 23: People walk through the New York Stock Exchange (NYSE) on May 23, 2022 in New York City. After a week of heavy losses, markets rose in trading on Monday morning. (Photo by Spencer Platt/Getty Images)

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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