Devik Jain, Bansari Mayur Kandar and Bansari Mayur Kamdar

(Reuters) – U.S. stocks are expected to open higher Wednesday following strong earnings updates by Visa and Microsoft. This follows a devastating selloff that saw the tech-rich Nasdaq close at its lowest level since December 2020.

Fears of an economic slowdown worldwide and a more aggressive Federal Reserve weighed on technology stocks and growth stocks Tuesday. Tesla’s (NASDAQ:) 12% slump was the worst on both the Nasdaq and the Nasdaq.

Tesla gained 0.6% amid fears that Elon Musk, Chief Executive Officer may need to sell shares in order to finance his purchase. Twitter Inc (NYSE:).

Microsoft Corp (NASDAQ:) surged 3.1% following it projected double-digit revenue growth in the next fiscal year. This was driven by cloud computing demand. Visa Inc The stock index rose 5.8% following a statement by the payments network that it expected revenue growth to surpass pre-pandemic levels.

Google-parent Alphabet Inc (NASDAQ:) Inc declined 4.2% due to slowing YouTube ad revenue. Boeing (NYSE:) Co fell 3.8% following disclosures of $1.5 billion in unusual costs resulting from halting 777x production.

Nearly a third of the companies on the S&P 500 report results this week. Meta Platforms Inc (Facebook-owner) published quarterly earnings after the market close and fell 3.6%.

In a sea filled with negative news there’s always something positive. Ryan Detrick chief market strategist for LPL Financial (NASDAQ) said that this earnings season had been very solid. Microsoft numbers also show strong demand and an optimistic corporate outlook.

“So volatile as the stock markets have been, we feel encouraged that there is very little chance of recession in the coming year.”

The megacap stocks that are growing in megacaps have suffered since the beginning of the year due to investors’ fears about rising inflation and geopolitical tensions.

The tech-heavy Nasdaq has shed 20.2% so far this year, while the benchmark S&P 500 is down 12.4%.

However, the overall earnings were better than anticipated. Of the 134 companies in the S&P 500 that reported earnings through Tuesday, 80.6% of them have exceeded Wall Street expectations. According to data from Refinitiv, 66% beat expectations.

8.28 am ET ET was up 219 points or 0.66%. ET was up 14 points or 0.34% and ET was up 13 points or 0.1%.

Toymaker is among other moving companies. Mattel Inc (NASDAQ) climbed 12.2% following a report by Reuters that a source said it was investigating a sale.

Audio streaming platform Spotify Technology SA’s U.S. listed shares fell 7.3% despite reporting quarterly revenues that exceeded analysts’ expectations due to higher advertising income.