Traders on the floor of the New York Stock Exchange
Source: NYSE
Futures on major US stock indices have risen at the beginning of the session overnight on Wednesday night, after pressure on technology stocks, the Nasdaq Composite fell 2% during the regular session.
Dow futures rose 30 points, while contracts related to the S&P 500 rose less than 0.1%. Nasdaq 100 futures were also traded just above the flat line.
Overnight moves came after a late sell-off in high-growth stocks and technology during the regular session.
The S&P 500 fell 0.6% after rising 0.8% during the day, while the technology-intensive Nasdaq fell 2% to close the session low. Apple, Facebook and Netflix fell more than 2%, while Tesla fell 4.8%.
The Dow Jones industrial average, which outperformed its peers in positive territory for most of the day, fell in the red in the final seconds of the session. The Dow industrial jumped by more than 300 points at its peak.
The Dow’s afternoon weakness came with the reopening of transactions, such as airlines and cruise operators, which reversed the previous force. Norwegian Cruise Line fell 4.9%, while Royal Caribbean and Carnival fell 1.9% and 2.8%, respectively. Delta and United Airlines also ended the day below.
Stock pressure came even as bond yields continued to fall from recent highs. The 10-year Treasury yield fell 3 basis points to 1.61% on Wednesday, falling for the third day after the rate hit a 14-month high last week.
Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell appeared for the second day of virtual testimony before federal lawmakers. Both reiterated their belief that, largely due to fiscal and monetary stimulus, the US economy will grow sharply in 2021.
“It’s going to be a very, very strong year in the most likely case,” Powell said. “There are, of course, risks to growth and disadvantage, but it should be a very strong year in terms of growth … In the longer term we need to increase revenues to support the ongoing spending we want to make.”
Powell and Yellen said on Tuesday that asset valuations appear high in certain areas of the market, but that the financial sector is healthy and equipped to deal with any market turmoil once the stimulus begins to fade.