U.S. The stock was boosted by futures on Tuesday as government bonds halted recent sell-offs and some land in giant Technol .G stocks improved.
Futures linked to the S&P 500 surged more than 1%, indicating that the broader market benchmark could climb after New York’s opening. Dow Jones Industrial Average futures 0.4% higher. The blue-chips index set a new intraday record on Monday.
Futures linked to the Nasdaq-100 rose 1.8% on Tuesday, indicating that shares of Technoland G are likely to rebound. Both the tech-heavy index and the broader Nasdaq Composite Index fell into the correction area on Monday, meaning that gauges have fallen more than 10% from recent highs.
Technol shares have come under pressure in recent weeks on the back of a sell-off in the bond market. As a result, investors questioned the high valuation of the technology sector, which is trading at its peak in 2020.
Yields on 10-year treasuries fell 1.542% on Tuesday. It ended the previous day at 1.594%, its highest level in a year.
Technology stocks will help offset some of their losses due to stability in bond markets, investors said. Money managers expect that many companies in the sector will continue to take advantage of online shopping and home-based access to media, entertainment and computing options, even if the Covid-1 lock down discounts are easy.
“This is a buy-the-dip mindset,” said Daniel Morris, chief market strategist at BNP Parisa Asset Management. “It’s not like we’ve changed our long-term view on tech. Everyone expected it to do well – it was really, really expensive. ”
U.S. lawmakers are on track to pass the latest version of the 9 91.9 trillion coronavirus stimulation package this weekend. This has boosted investor confidence in the prospects of the economy and increased demand for stocks in companies that are likely to benefit from the economic boom, such as banks and producers.
The rotation sent Down – which is given more weight towards the cyclone zones – closer to its second-highest in history on Monday.
Some investors now expect bond markets to calm down following a sharp rise in the US government’s debt-hungry yields. The 10-year Treasury yield was as low as 0.915% near the start of the year.
“We feel that a large part of the bond-yield move has been completed,” said Honey Reda, portfolio manager at Pinebridge Investments. “At this level of yield, we expect additional buyers to come. It stabilizes the yield level.”
Overseas, pan-continental stocks rose 0.4% in the Europe 600.
In Asia, most key indices were mixed by trade closures. The Shanghai Composite is down 1.8% and the South Korean Kospi is down 0.7%. Japan’s Nikkei 225 is up 1%.
Write to Caitlin Ostroff at [email protected]
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