U.S. Stocks May See Further Downside After Yesterday's Sell-Off

(RTTNews) - Following the sell-off seen in the previous session, stocks may see further downside in early trading on Wednesday. The major index futures are currently pointing to a modestly lower open for the markets, with the S&P 500 futures down by 0.1 percent.

Lingering concerns about valuations may lead to continued weakness on Wall Street amid worries about a potential artificial intelligence bubble.

Advanced Micro Devices (AMD) may lead the markets lower, as the chipmaker is slumping by 2.5 percent in pre-market trading.

The drop by shares of AMD comes after the company reported better than expected third quarter results but seemingly disappointed investors by providing adjusted margin guidance for the fourth quarter in line with estimates.

Shares of Super Micro Computer (SMCI) are also plunging by 7.6 percent in pre-market trading after the tech company reported fiscal first quarter results that missed expectations.

Cloud networking company Arista Networks (ANET) is also seeing substantial pre-market weakness despite reporting third quarter results that exceeded analyst estimates on both the top and bottom lines.

However, the futures regained some ground following the release of a report from payroll processor ADP showing private sector employment in the U.S. rebounded by more than expected in the month of October.

ADP said private sector employment climbed by 42,000 jobs in October after slipping by a revised 29,000 jobs in September.

Economists had expected private sector employment to rise by 25,000 jobs compared to the loss of 32,000 jobs originally reported for the previous month.

Shortly after the start of trading, the Institute for Supply Management is scheduled to release its report on service sector activity in the month of October.

The ISM's services PMI is expected to inch up to 50.8 in October from 50.0 in September, with a reading above 50 indicating growth.

Stocks staged a recovery attempt an early slump on Tuesday but showed a notable move back to the downside over the course of the trading session. The major averages all moved lower on the day following the mixed performance seen during trading on Monday.

The tech-heavy Nasdaq posted a particularly steep loss on the day, plunging 486.09 points or 2.0 percent to 23,348.64. The S&P 500 also slumped 80.42 points or 1.2 percent to 6,771.55, while the narrower Dow slid 251.44 points or 0.5 percent to 47,085.24.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Wednesday. Japan's Nikkei 225 Index tumbled by 2.5 percent, while south Korea's Kospi dove by 2.9 percent.

Meanwhile, the major European markets are turning in a mixed performance on the day. While the U.K.'s FTSE 100 Index is up by 0.2 percent, the French CAC 40 Index is down by 0.1 percent and the German DAX Index is down by 0.3 percent.

In commodities trading, crude oil futures are slipping $0.38 to $60.18 a barrel after falling $0.49 to $60.56 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $3,987.10, up $26.60 compared to the previous session's close of $3,960.50. On Tuesday, gold tumbled $53.50.

On the currency front, the U.S. dollar is trading at 153.88 yen compared to the 153.67 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is unchanged compared to yesterday's $1.1482.