US stock futures rose slightly on Wednesday after a major sell-off the day before due to rather weak earnings reports of tech companies. Futures tied to the Dow Jones Industrial Average rose by 220. S&P 500 futures gained 0.4%. Nasdaq 100 futures climbed by 0.2%, one day after the Nasdaq Composite's worst day since 2020.

Analysts note that the stock market may recover if the earnings results of tech companies are strong and their outlooks are also upbeat. It may attack investors back to the equity market. Yesterday, the Nasdaq Composite resumed a downward movement, losing 3.95%. It reaching a new yearly low. The index also logged its largest one-day percentage decline since September 2020. Now, the index is trading 23% below its annual high. The S&P 500 index sank by 2.8% on Tuesday, notching the worst performance since March of this year. The Dow shed 809.28 or 2.4%.

Meta, T-Mobile, Boeing, PayPal, and Ford are going to unveil their earnings reports today. Apple and Amazon will reveal their quarterly results on Thursday. Investors are sure to wait for the earnings reports of these tech giants before jumping to any conclusions. If the results are disappointing, stock indices may tumble to new lows.

The euro sank considerably against the US dollar as Russia announced that it would halt gas exports to Poland and Bulgaria due to their refusal to pay for supplies in rubles.

Gas prices in Europe have soared as traders are worried that other EU countries dependent on Russian gas will also face the same problem in the near future. The news about the suspension of gas supplies raised concerns about a further surge in inflation and a sharp slowdown in the eurozone economy.

Oil exceeded $102 per barrel amid geopolitical tensions, as well as headwinds in China due to coronavirus restrictions.

Treasuries rose slightly with the yield of 10-year government bonds stabilizing at 2.76%.

Premarket

Alphabet's net income disappointed market participants due to weak advertising revenue on YouTube. The company has warned that the earningsreport for the next quarter may also be weak. Its shares in the premarket fell by more than 3%.

Meanwhile, Robinhood stocks shed about 3% in the premarket after the company announced staff cuts. The company cited "duplicate roles and job functions" after rapid expansion last year.

Microsoft shares jumped by 3% in premarket trading as the company topped analysts' expectations. It revealed forecast revenue for the current quarter broadly ahead of Wall Street targets.

Outlook for S&P500

The bulls failed to push the price above the $4,265 level yesterday, which led to a new major sell-off to $4,216. Their primary task is to return the index to this level. Otherwise, the bears will regain control. Only the consolidation above $4,216 will help undermine the bearish sentiment that has appeared again recently. However, it is too early to talk about the resumption of an upward trend. The consolidation above $4,216 may push the price higher to $4,265, $4,319, and $4,376. In case of a decline, bulls should defend $4,162. This scenario looks likely as there are no positive fundamental factors now, save for earnings reports. Weak US economic stats may also drag the price down. If the index drops below the indicated level, it will open the way to a low of $4,113. If you have not opened trades in this range, it is better to cancel long positions to the lows of $4,085 and 4,057.