Economic news

Nasdaq Futures up 1% as Tech Stocks Rebound

(Reuters) - Nasdaq futures jumped 1% on Wednesday as technology stocks led a rebound after concerns about inflation and rising Treasury yields drove one of Wall Street’s worst selloff of this year.

Shares of heavyweights Inc, Facebook Inc, Microsoft Corp, Apple and Google-parent Alphabet Inc rose between 1% and 1.3% in premarket trading.

Oil firms including Exxon Mobil and Chevron Corp dipped as a rally in crude prices petered out. The S&P energy sector has gained 3.9% so far this week and is on track for its best monthly performance since February.

U.S. stocks ended sharply lower on Tuesday in a broad sell-off, with the benchmark S&P 500 index logging its biggest one-day percentage drop since May and the Nasdaq posting its worst daily selloff since March.

The S&P 500 index is also set to break its seven-month winning streak as fears about China Evergrande’s default, potential higher corporate taxes and a sooner-than expected tapering of monetary support by the Federal Reserve clouded investor sentiment in what is usually a seasonally weak month.

The Fed last week signaled it could tighten its monetary policy in the months ahead amid signs of a choppy recovery in the world’s largest economy, triggering a rally in bond yields that hit interest rate-sensitive tech stocks.

At 6:34 a.m. ET, Dow e-minis were up 203 points, or 0.59%, S&P 500 e-minis were up 32 points, or 0.74%, and Nasdaq 100 e-minis were up 147.25 points, or 1%.

Meanwhile, U.S. Senate Republicans for a second day in a row blocked a bid by President Joe Biden’s Democrats to head off a potentially crippling U.S. credit default, as partisan tensions rattled an economy recovering from the COVID-19 pandemic.

JPMorgan Chase & Co Chief Executive Jamie Dimon also cautioned a U.S. default would be “potentially catastrophic” event.

Among stocks, Boeing Co rose 2.5% after it said 737 MAX test flight for China’s aviation regulator last month was successful and the planemaker hopes a two-year grounding will be lifted this year.

Reporting by Devik Jain in Bengaluru; Editing by Saumyadeb Chakrabarty

Source: Reuters


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