Stock futures trade mixed following Nasdaq rebound
U.S. equity futures are trading mixed, with the Nasdaq giving up some of Tuesday's gains.
The major futures indexes suggest a rise of 0.2% on the Dow when the Wednesday trading session begins.
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Investors will get to examine inflation on the retail level when the the Bureau of Labor Statistics releases the February report on consumer prices. Expectations are that prices rose 0.4%, slightly above the previous month’s 0.3% increase. On a year-over-year basis watch for prices to jump 1.7%, up from January’s 1.4% rise.
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Asian stock prices followed Wall Street higher on Wednesday following a rally for major tech companies.
The Nikkei 225 in Tokyo advanced less than 0.1%, the Hang Seng in Hong Kong added 0.5% and China's Shanghai Composite Index was off 0.1%.
In Europe, London's FTSE was off 0.2%, Germany's DAX added 0.3% and France's CAC added 0.5%.
Wall Street's benchmark S&P 500 index closed up 1.4%, led by gains for Apple, Amazon and other tech majors. The Nasdaq composite index, dominated by tech shares, surged 3.7% for its biggest gain in four months.
Markets have been adjusting to a rise in long-term interest rates in the bond market, which has pulled money out of stocks. A reversal in bond market trends at least temporarily sent investors back to companies they hope will thrive after the coronavirus pandemic ends.
The yield on the benchmark 10-year notes was at 1.55%.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 44755.89 | -154.76 | -0.34% |
| SP500 | S&P 500 | 6046.65 | +14.27 | +0.24% |
| I:COMP | NASDAQ COMPOSITE INDEX | 19410.662282 | +192.50 | +1.00% |
On Wall Street, the S&P 500 rose Tuesday to 3,875.44. Communication companies and those that rely on consumer spending contributed to the increase. Financial, energy and industrial stocks lagged the broader market.
Apple rose 4.1%, chipmaker Nvidia climbed 8% and Tesla jumped 19.6% for the biggest gain in the S&P 500.
The Dow Jones Industrial Average, which is weighted less toward tech, rose 0.1% to 31,832.74.
The Nasdaq advanced to 13,073.82. Despite that, the index is 7.2% below its Feb. 12 high. On Monday it closed 10% below its peak in what is known as a correction on Wall Street.
Financial sector stocks, which had benefited from the rise in bond yields, were the biggest decliners Tuesday. Bank of America fell 2.2%, while American Express slid 3.4%. Banks and credit card issuers tend to do well when interest rates are rising because they can charge higher rates.
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Investors are betting the $1.9 trillion in coming government stimulus will help lift the U.S. economy out of its coronavirus-induced malaise. The package set for final approval in the U.S. House on Wednesday provides direct payments of up to $1,400 for most Americans and extends emergency unemployment benefits that help to support consumer spending, the economy's main engine.
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In energy markets, benchmark U.S. crude added 20 cents to $64.20 per barrel in electronic trading on the New York Mercantile Exchange. The contract sank $1.04 on Tuesday to $64.01. Brent crude, used to price international oils, added 8 cents to $67.60 per barrel in London. It retreated 72 cents the previous session to $67.52.
The Associated Press contributed to this article.