As investors digested the disappointing Netflix earnings report and considered what was ahead, stock futures fell overnight.

Futures on Dow Jones Industrial Average dropped 40 points. Or 0.12%. S&P 500 futures dipped 0.4% and Nasdaq 100 futures sank 0.9%.

Netflix shares plunged 25% after the company reported a loss in subscribers of 200,000 in its first quarter. This news led to shares in streaming companies Roku, Disney and Roku falling 25%. Warner Bros. Discovery ParamountTechnology stocks could continue to decline, which would further concern investors who may be tempted to purchase technology stocks in anticipation of earnings. IBM shares rose by 3% following an improvement in earnings and revenue.

The major averages posted their highest day since March 16, posting strong gains during trading. The Nasdaq Composite bounced back 2.15%, while the Dow Jones Industrial Average rose 499.51 points, or 1.45% and the S&P 500 gained 1.61%.

Stock market rallies Tuesday were broad-based, with all 11 segments ending positive. The rally was led by consumer discretionary. Alphabet and Microsoft saw the largest gains, rising 1.7% each, and airline stocks rose after. TSA lifted mask mandates on planesIn response to a Florida court decision.

The 10-year Treasury yield soared to 2.94%. This is its highest point since December 2018, The drop in oil prices was about 5% International Monetary Fund cut its economic growth forecastsHe warned about higher inflation risks.

Lindsey Bell from Ally Invest said that “I think today we are in a market when different things shine,” on Tuesday’s CNBC’s Closing Bell. The market’s focus today is on “We have a fantastic earnings season thus far.” They’re focusing on the VIX that’s coming down and of course, oil prices — the fall in oil prices helps the inflationary story.”

Investors are looking ahead to a new group of earnings on Wednesday, with Procter & Gamble set to report before the bell, followed by Tesla and United Airlines after the market closes.

Apart from the earnings report, investors await Wednesday’s release of existing home sales data.