Stock futures inch higher in overnight trading after Nasdaq’s best day since November
A Nasdaq market maker works at the Nasdaq Market site in New York, May 2, 2019.
Brendan McDermid | Reuters
Stock futures edged higher in overnight trading Tuesday following a sharp rebound in technology shares amid falling bond yields.
Futures on the Dow Jones Industrial Average rose 40 points. S&P 500 futures gained 0.1% and Nasdaq 100 futures climbed 0.2%.
On Tuesday, the Nasdaq Composite climbed 3.7% to post its best day since November as investors poured back into popular growth names after a recent pullback. Tesla surged 19.6% for its biggest one-day pop since February 2020. Apple and Facebook popped more than 4% each, while Amazon rallied 3.8%.
The tech-heavy benchmark had fallen into correction territory on Monday, or down more than 10% from its recent high.
“Corrections … create natural inflection points for traders,” said Chris Larkin, managing director of trading and investing product at E-Trade Financial. “Let’s not forget that less than a year ago traders interpreted one of the biggest negative macro events in market history as a buying opportunity, so there’s little reason to think otherwise given all the positive signals around us today.”
The snapback in tech coincided with a decline in bond yields. The 10-year Treasury yield slid more than 5 basis points to 1.54% after trading as high as 1.62% on Monday.
Investors will monitor Wednesday’s inflation data to gauge if price pressures are running hot. Higher inflation expectations have been pushing bond yields higher, which put pressure on risk assets, especially high-growth tech stocks.
February’s consumer price index is expected to rise 0.4% in February, or up 1.7% from a year ago, according to economists surveyed by Dow Jones. The data is slated for release at 8:30 am ET. That compares to a 0.3% increase in January, and a 1.4% rise on an annual basis.
Elsewhere, House Democrats aim to pass the $ 1.9 trillion coronavirus relief bill Wednesday. President Joe Biden is expected to sign the legislation in time to beat a Sunday deadline to renew unemployment aid programs.