U.S. stock futures pointed higher Tuesday after the previous day’s slump led by technology companies.
What’s happening
- Futures on the Dow Jones Industrial Average YM00, +0.32% rose 118 points, or 0.4%, 33988
- Futures on the S&P 500 ES00, +0.34% rose 0.4%, or 16 points, to 4307
- Futures on the Nasdaq 100 NQ00, +0.46% rose 0.6%, or 80 points, to 14542.
On Monday, the Dow Jones Industrial Average DJIA, -0.94% fell 324 points, or 0.94%, to 34003, the S&P 500 SPX, -1.30% declined 57 points, or 1.3%, to 4300, and the Nasdaq Composite COMP, -2.14% dropped 311 points, or 2.14%, to 14255.
The tech-heavy Nasdaq Composite has dropped 7% from its record peak set last month.
What’s driving markets
Tech stocks have struggled since the Federal Reserve set an end date for its taper program, before it even started to reduce the rate of bond purchases. That has helped bring forward expectations for interest-rate hikes, which is harmful for long-duration companies like those in the technology sector.
Dan Ives, the well-known tech analyst at Wedbush Securities, says the sector is being unfairly punished.
“We continue to believe this pressure on the tech sector is short-lived with our belief that tech stocks will be up 10%+ into year-end as the tech growth stories are being massively underestimated by the Street in our opinion with [third quarter] earnings a major positive catalyst for the tech sector looking ahead,” said Ives.
The economics calendar includes data from the services sector, with releases from Markit and the Institute for Supply Management. Fed Vice Chair for Supervision Randal Quarles is due to speak on the LIBOR transition.
Also in Washington D.C., former Facebook FB, -4.89% employee Frances Haugen will testify before a Senate subcommittee, saying in prepared testimony that the social-media giant prioritized profits over safety.
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