Stock futures inch higher following tech rebound


People walk along Wall Street in the Financial District on September 02, 2020 in New York City.

Spencer Platt | Getty Images

U.S. stock futures were higher in early Thursday morning trading following a rebound during market hours that stopped a three-day skid. 

Futures for the Dow Jones Industrial Average rose 49 points. Contracts for the S&P 500 and the Nasdaq 100 saw similarly minute gains.

The move in futures follows a broad rally for the market on Wednesday, with the S&P 500 rising 2% for its best day since June. The Nasdaq Composite rose 2.7% to pull itself out of correction territory after a sell-off for major tech stocks drove a sharp sell-off in three straight sessions. 

Some of stocks hardest hit during the recent slide saw more dramatic pops. Shares of Tesla, fresh off their worst day on record, rose nearly 11%. Tech giant Apple gained 4% to bring its market cap back to $2 trillion. 

The three-day drop came amid increasing worry on Wall Street about a tech bubble, with major tech stocks fueling the Nasdaq Composite to record highs despite the hit to the economy from the coronavirus pandemic. Some said the pullback did not go far enough, with Duquesne Family Office CEO Stanley Druckenmiller telling CNBC on Wednesday morning that the market was in an “absolute raging mania.” 

Others pointed to reasons why the market could regain its footing once again. Liz Young, the director of market strategy for BNY Investment Management, said the investor cash still parked on the sidelines after the pandemic-induced sell-off in February and March should provide support for stocks. 

“People go to cash in droves — and it’s immediate, it’s a big wave. They come back in in drips. So as it drips back in, that cash is going to look for more attractive valuation opportunities. So I think it’s natural that it would look for things that have been a little more beaten down or some of the stocks that haven’t driven us up to this point,” Young said on “Closing Bell.” “But I don’t think we’re in a place now where you have to start selling rallies and taking exposure off the table.”

Investors will be be greeted with new economic data on Thursday morning, including the Labor Department’s weekly jobless claims report. Economists surveyed by Dow Jones expect 850,000 new claims, down from 881,000 last week. 

Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.



Source link

Discover

Sponsor

Latest

5 things to know before the stock market opens February 11, 2021

Here are the most important news, trends and analysis that investors need to start their trading day:1. Dow set to add to Wednesday's...

Facebook gives Bletchley Park £1 million to help it through pandemic

Bletchley Park was a codebreaking facility during World War Two.GettyLONDON — Bletchley Park, a top-secret British codebreaking hub in World War Two, has...

How Do Genes Impact My Health? Genealogy Care Blog

submitted by /u/plantsandplants Source link

Google CEO email delays return to Sept 2021, no permanent remote work

Google CEO Sundar Pichai speaks on stage during the annual Google I/O developers conference in Mountain View, California, May 8, 2018.Stephen Lam |...

New coronavirus strain weighs on sentiment

LONDON — European shares were higher Tuesday morning, attempting to recover from a brutal sell-off in the previous session, as investors sentiment was...