In after-hours trading, Dow Jones futures, along with S&P 500 futures and Nasdaq futures, rose slightly. This came after the stock market correction hit new lows on Tuesday, wiping out Monday’s slim gains. The 10-year Treasury yield continued to reach long-term highs. The Federal Trade Commission and 17 states filed an antitrust lawsuit against Amazon, a move that was long-expected. The market downturn affected other megacap stocks such as Alphabet, Microsoft, and Apple.
Despite the overall market decline, Costco Wholesale’s earnings and revenue beat expectations. However, shares fell slightly in overnight trading and dropped below their 50-day line in Tuesday’s regular session. Meanwhile, Meta Platforms, the parent company of Facebook and Instagram, is set to unveil virtual reality hardware and artificial intelligence tools at its Meta Connect conference. Its stock dipped slightly on Tuesday, just below its 50-day moving average.
Overall, the stock market correction intensified on Tuesday, with major indexes reaching new lows. Amazon stock and other megacap stocks, such as Alphabet, Microsoft, and Apple, experienced significant declines. The market also saw a rise in the 10-year Treasury yield, which reached its highest level since October 2007. Although the stock market is considered oversold by some measures, a significant rebound is unlikely without a retreat or stabilization in Treasury yields. Additionally, a federal government shutdown on October 1 is becoming increasingly likely.