Tech Stocks Poised To Lead The Way Higher In Early Trading
Following the starkly mixed close seen on Monday, stocks are likely to move mostly higher in early trading on Tuesday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures rising by 86 points and the Nasdaq futures spiking by 285 points.
The upward momentum on Wall Street comes amid a pullback by treasury yields, with the yields on ten-year notes and thirty-year bonds showing notable moves to the downside.
The drop by the yield on the benchmark ten-year note comes after ended it the previous session at its highest closing level in over a year.
Yields, which move opposite of bond prices, are moving lower as treasuries rebound following recent weakness as traders go bargain hunting.
The jump in yields seen in the previous session led to a sell-off by technology stocks, resulting in a steep drop by the tech-heavy Nasdaq.
Tech stocks may subsequently lead the way higher in early trading, with Apple (AAPL), Microsoft (MSFT) and Amazon (AMZN) seeing notable strength in pre-market trading.
Nonetheless, overall trading activity may be somewhat subdued, as a lack of major U.S. economic data keeps comes traders on the sidelines.
Traders may look ahead to Wednesday’s report on consumer prices amid recent concerns about the outlook for inflation.
Stocks turned in a starkly mixed performance during trading on Monday, as the Dow jumped to a new record intraday high but the tech-heavy Nasdaq showed a sharp pullback. The S&P 500 spent much of the day in positive territory before closing in the red.
The Dow ended the session well of its best levels of the day but still closed up 306.14 points or 1 percent at 31,802.44. Meanwhile, the Nasdaq plunged 310.99 points or 2.4 percent to 12,609.16, its lowest closing level in almost three months, and the S&P 500 slid 20.59 points or 0.5 percent to 3,821.35.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan’s Nikkei 225 Index jumped by 1 percent, while China’s Shanghai Composite Index tumbled by 1.8 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the German DAX Index has risen by 0.4 percent, the French CAC 40 Index is up by 0.3 percent and the U.K.’s FTSE 100 Index is up by 0.2 percent.
In commodities trading, crude oil futures are slipping $0.16 to $64.89 a barrel after slumping $1.04 to $65.05 a barrel on Monday. Meanwhile, after tumbling $20.50 to $1,678 an ounce in the previous session, gold futures are spiking $29.90 to $1,707.90 an ounce.
On the currency front, the U.S. dollar is trading at 108.84 yen compared to the 108.89 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1896 compared to yesterday’s $1.1847.
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