As the downgrade of Fitch’s U.S. ratings continues to loom and earnings reports turn negative, stock futures are once again declining on Thursday. Traders may exercise caution due to upcoming quarterly reports from notable tech companies like Apple. Additionally, Treasury yields are rising, which diminishes the attractiveness of tech stocks. The release of service sector readings could provide insight into the economic outlook. In Wednesday’s trading, stocks plummeted as the risk aversion caused by Fitch’s downgrade of the U.S.’s sovereign rating led traders to seek cover. Despite a strong private payroll report, the major averages opened lower and closed significantly below the previous day’s closing prices. Communication services, technology, consumer discretionary, industrial, and material stocks experienced the largest sell-offs. Analysts suggest that stocks could experience a modest pullback of around 5%. August historically underperforms, especially when the S&P 500 Index has seen significant gains leading up to the month. Analysts also speculate that the Federal Reserve will not lower rates anytime soon due to core inflation levels. They recommend rebalancing portfolios to favor value-style equities or those with attractive growth prospects at a reasonable price. Futures performance on Thursday shows declines across the board. Notable stocks reacting to earnings include PayPal, Occidental Petroleum, Cheesecake Factory, DoorDash, Qualcomm, Qorvo, Etsy, and EVgo. Several important companies are set to release their quarterly results before the market opens, including Bausch Health Companies, Cars.com, Expedia Group, Hasbro, Hyatt Hotels, Kellogg, Moderna, Regeneron Pharmaceuticals, and Warner Bros. Discovery. Reporting after the close include Amazon, Apple, Amgen, Atlassian Corporation, DraftKings, and Gilead Sciences. In commodities and bond markets, crude oil futures fell, and the 10-year Treasury note rose. Major Asian markets ended lower, while the Chinese market and Indonesian market saw moderate gains. European markets were also in the red ahead of the Bank of England’s monetary policy meeting, where a rate hike is anticipated.