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Futures Rebound From Cap Gains Tax Selloff

US equity futures rebounded Friday following Thursday’s 1% selloff as investors digested a proposal for higher capital gains taxes and realized that i) it is nothing new compared to previous media reports and ii) the most likely outcome is a compromise tax rate (Goldman expects a final number no higher than 28%).  Still, both the S&P 500 and Dow are on course for weekly declines, after four straight weeks of gains. At 730 a.m. ET, Dow e-minis were up 38 points, or 0.11%, S&P 500 e-minis were up 9 points, or 0.22%, and Nasdaq 100 e-minis were up 18.5 points, or 0.14%.

Some key premarket moves:

  • Cryptocurrency and blockchain-related stocks including Riot Blockchain and Marathon Digital dropped 6.6% and 7.1% after bitcoin tumbled overnight below $50,000 on fears plans to raise capital gains taxes would curb investment in digital assets. Bitcoin was last trading just above $50K.
  • Intel shares fall 2.7% in U.S. premarket trading. The chipmaker’s 1Q update shows a drop in data-center revenue that offset strong PC chip sales. Analysts are divided on the results with some seeing the data-center slump as a blip, but others less convinced it is so.
  • Oil companies, mainly Chevron Corp, Marathon Petroleum, Exxon Mobil Corp and Occidental Petroleum, gained between 0.2% and 1.1% as oil prices rose.

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