Stock futures fall as April selling returns after 1-day respite

U.S. stock futures fell Tuesday as the April sell-off continued after a one-day bounce.

Futures tied to the Dow Jones Industrial Average eased about 220 points, or 0.7%. S&P 500 futures were down about 0.6%. Nasdaq 100 futures fell 0.7%.

On Monday, the Dow reversed a near 500-point intraday loss to close up more than 200 points. The dramatic market rebound pushed the Nasdaq Composite higher by 1.3% and the S&P 500 up by 0.6%.

"Quite an impressive reversal, unfortunately we don't believe that [Monday's] low is the end of the market's drawdown," wrote Rob Ginsberg, technical analyst with Wolfe Research. "The sell-off still feels a bit too orderly to us."

Monday's bounce was welcomed by investors as stocks have struggled in the past several weeks. The Dow last Friday posted its fourth losing week in a row and the S&P and Nasdaq hit three consecutive down weeks.

The tech-heavy Nasdaq fell into bear market territory last week, but after Monday's comeback sits 19.8% from its record. For April, the S&P 500 is off by 5%, the Nasdaq is down more than 8% and the Dow is down roughly 2%.

Concerns about global economic growth took center stage again Tuesday as investors worried about a Covid surge in China and potential lockdowns in Beijing. U.S. Treasury yields declined, with the benchmark 10-year rate falling below 2.8%.

Corporate earnings reports also set the tone Tuesday. Dow component 3M fell about 1% in the premarket despite better-than-expected earnings as the company noted macroeconomic and geopolitical challenges ahead.

Other industrial names like General Electric and Boeing were lower in early morning trading Tuesday. GE fell more than 5%, while Boeing eased 0.7%.

Microsoft and Google parent Alphabet were marginally lower in the premarket ahead of quarterly reports after the bell. Investors are on edge after Netflix's disappointing report last week and are looking to a slew of quarterly results this week to assess the mega-cap technology space.

The strength in Big Tech stocks in recent years "is likely to burst when fundamentals start to meaningful deteriorate as the overall economy slows," Wolfe Research's Chris Senyek said in a research note.

On the upside, UPS shares added more than 1% in premarket trading after the shipper's quarterly earnings and revenue topped expectations. The company also reaffirmed its forward guidance.