U.S .. Stock index futures fell on Thursday as a cut in the eurozone growth forecast reignited fear that the global economy may be slowed down.
This growth outlook worried that the global economy could slow down, with similar fears contributing to the sharp decline of the market in December. & P 500 short time to bear market on an intraday basis.
Thursday's decline comes as the corpus tea profits continue, Twitter reported quarterly earnings beating analysts' expectations on Thursday, but shares in that social The media company fell more than 7 percent when Twitter also issued light guidance. Fiat Chrysler and Cardinal Health are also among the companies that reported better than expected earnings.
Bad earnings view?
The companies report solid profit growth in the fourth quarter with a profit showing an increase of 14.1 per cent on an annual basis, according to Factset. But the outlook that comes with these income reports is not so rosy. Due to the poor forecasts, earnings for the first quarter of 2019 are expected to fall above 1 per cent, according to FactSet. It is the first year-over-year decline in earnings of more than two years.
S & P 500 snatched a five-day winning knit on Wednesday after the release of mixed quarterly results. The broad index – even though it has sharply declined from the December downturns – is still below the 200-day moving average, a broad-based technical level.
"The S & P 500 extraction has expanded to important resistance from its 200-day average and late 2018 heights of 2742/2815. We seem to disappear the recovery here, and for this to define the top of a potentially far-sided spectrum, says David Sneddon, CEO of Credit Suisse, in a note.
CNBC's Silvia Amaro and Reuters contributed to this report.