After Netflix’s disappointing earnings report, U.S. stock futures fell overnight Thursday. This was in addition to the declines of major averages in regular trading.

Futures contracts that are tied to Dow Jones Industrial Average fell 37 points. S&P 500 futures were down 0.33%, while Nasdaq 100 futures declined 0.74%.

Netflix shares tumbled 19% during extended tradingThe company released its fourth-quarter earnings reports on Thursday. It showed a slower growth in subscribers. Peloton plunged 23.9% in regular trading following the company’s fourth-quarter earnings report. CNBC reportedTemporarily, the company will stop production of its health products.

During regular tradingDow fell 313 points (or 0.89%) during the session. The 30-stock benchmark rose more than 500 points at one time during the session. The opposite happened for all the major averages. The S&P declined 1.1% after earlier advancing 1.53%. Nasdaq Composite finished the day down 1.3% after a move in the previous session that saw the tech-heavy index go up 2.1%.

Scott Redler, T3 Live said that “the market has been flashing false signals over the last few weeks” and “it seems like the broader indexes are finally falling down.” The S&P 500 closed below 4,500 on Thursday for the first time since October 18, which Redler said is important from a technical standpoint and “opens the door for a targeted move to at least 4,320, which would take the S&P down 10%.”

Thursday’s slide puts the Nasdaq Composite further in correction territory — more than 10% below its November record — as rising rates pressure technology stocks since future profits begin to look less attractive.

On Thursday, the yield of the benchmark 10-year Treasury reached 1.87% ahead of next week’s Federal Reserve meeting.

Scott Wren of Wells Fargo Investment Institute, senior global strategist for markets, stated, “While there are a few rate hikes in the coming year, it would not be considered a shift by Fed policy. However, we wouldn’t consider policy restrictive. We don’t expect the first rate rise to cause a slowdown in the economic recovery.” He said that rates hikes would inject volatility into markets.

Both the Dow and S&P 500 are on track for a third straight week of losses. Nasdaq Composite fell nearly 5% during the week. This is its fourth straight losing week. Also, small caps are being hard hit and the Russell 2000 has its worst week since June 2020.

Some believe stocks can be of value despite the recent selloff in technology companies.

Robert Schein (chief investment officer, Blanke Schein Wealth Management) stated that with the wider Nasdaq’s correction territory, there are opportunities for certain sectors of the tech industry, including semiconductors and cloud stocks. However, he quickly pointed out that he doesn’t see this pullback as an “widespread” buy-the-dip moment.

Schlumberger’s earnings report will be available before Friday’s market opening.

Patti Domm of CNBC contributed reporting.