Stock futures dip after a steep sell-off on Wall Street, Apple and Tesla fall after earnings

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Stock futures fell in overnight trading on Wednesday as the market is poised to extend a sharp sell-off amid concerns about heightened speculative trading.

Futures on the Dow Jones Industrial Average traded 120 points lower. S&P 500 futures dipped 0.7% and Nasdaq 100 futures fell 0.8%.

Apple turned in its largest revenue on record at $111.4 billion in its fiscal first-quarter earnings report for fiscal 2021. Sales for every product category rose by double-digit percentage points. Shares of the tech giant dipped 3%, however.

Tesla dropped more than 3% in extended trading after the electric car maker posted worse-than-expected earnings for the latest quarter. The company also said it expects annual average delivery growth of 50% going forward.

Wall Street suffered steep losses on Wednesday, with the S&P 500 and the Dow posting their worst day since October, as the speculative buying frenzy in heavily shorted stocks kept investors on edge. Some fear that hedge funds being squeezed could be forced to reduce their equity holdings to raise cash.

Trading volume exploded in the previous session with 23.7 billion shares changing hands, marking the heaviest trading day since at least 2007.

Brick-and-mortar video game retailer GameStop, a target on the “wallstreetbets” Reddit chat room, soared another 134% Wednesday, pushing its January gains to a whopping 1,744%. AMC Entertainment surged over 300% Wednesday alone, experiencing its highest volume ever.

GameStop fell 7% in extended trading, while AMC Entertainment dropped 20%. Other highly shorted names that had rallied this week, including Bed Bath & Beyond and National Beverage, also fell after hours.

Facebook stock remained relatively flat in after-hours trading after the company warned that a reversal in pandemic trends could hurt its advertising business. The social media company beat on top and bottom line for the fourth quarter.

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