Nasdaq futures slightly lower as index closes in correction territory

US stock futures were little changed on Wednesday after another choppy trading session as investors remained cautious amid rising yields and the Nasdaq plunged into correction territory.

Futures linked to the Dow Jones Industrial Average were down 28 points, or 0.08%. S&P 500 futures were down 0.17% and Nasdaq 100 futures were up about 0.2% lower.

Shares of United Airlines fell about 2.5% in long-term trading after the company released its quarterly results and warned that omicron has dented bookings and will slow the pandemic recovery.

In regular trading, the Dow fell 339 points, or 0.9%, for the fourth day in a row. The S&P 500 also fell 0.9%. The Nasdaq Composite closed 1.15% and is now about 10% off the November record.

This year’s turbulence in technology stocks, caused by a spike in yields in the first week of January, continued on Wednesday as 10-year US Treasury yields peaked at 1.9%. It started the year at about 1.5%.

Brad McMillan, chief investment officer at Commonwealth Financial Network, acknowledged the turbulence could last for some time, but said investors should not panic over rate hikes and are back to normal as the economy returns to normal.

“The economy and markets can and will adapt to changes in interest rates,” McMillan said. “This environment is a normal part of the cycle and one that we see regularly. The current trend may be a little faster than we’ve seen, but it’s a response to real economic factors — and therefore normal in context.”

In addition to growth stocks, banks also retreated on Wednesday, despite strong earnings reports from Bank of America and Morgan Stanley, both of which saw shares rise.

Major regional banks Regions Financial and Fifth Third will report results before the bell Thursday, as will American Airlines, Union Pacific and Baker Hughs. Netflix is ​​the big name to watch on Thursday. The streaming giant will report its quarterly results after the bell.

In economic data, investors expect figures on unemployment claims and existing home sales on Thursday.