News

“Back To Normal” As Futures Rebound After Yellen Reversal

US index futures rebounded from Tuesday’s tech-led rout, with Nasdaq futures leading gains alongside shares in Europe as focus shifted away from inflation fears and turned to strong earnings and the global economic recovery. Nasdaq futs gained the most, rising 70.25pts or 0.52% to 13,606, S&P futures were up 14.25 points or 0.34%, and Dow futures were back over 34,000, up 57pts or 0.17% to 34,077. Oil and the dollar also climbed.

  • FAAMGs (Apple, Microsoft, Amazon.com, Facebook and Alphabet) rose between 0.3% and 0.9%.
  • Value stocks also gained, with oil major Chevron Corp adding 1.3%, lender Goldman Sachs Group Inc up 0.7% and heavy machinery maker Caterpillar Inc gaining 0.3%.
  • Ride-hailing company Lyft Inc rose 5.9% after it surprised Wall Street with significantly lower losses than expected.
  • Rival Uber Technologies Inc is set to report earnings after markets close on Wednesday.
  • T-Mobile US Inc gained 2.4% as it raised its full-year postpaid subscriber net additions forecast

The Nasdaq fell 1.9% on Tuesday, the most since March, in a rout sparked by fears of quickening inflation, and accelerated after Treasury Secretary Janet Yellen rattled markets with comments that interest rates may have to rise moderately to keep the economy from overheating. Coupled with stock valuations near the highest in two decades, it was enough to deliver the worst day for the Nasdaq 100 since March, even as Powell previously assured markets that interest rates will remain at current lows throughout the recovery.

MORE

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s