Futures point to gains for tech-related stocks as bond yields ease
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[March 22, 2021]
By Medha Singh
(Reuters) - Futures tracking the S&P 500
and the Nasdaq rose on Monday, with heavyweight technology stocks set to
rebound after a surge in bond yields in recent weeks sparked a flight
from richly valued equities.
A sharp run up in Treasury yields since mid-February has dictated the
course of equities trading, while weighing on high-growth tech stocks,
whose valuations look stretched.
Futures tied to the tech-heavy Nasdaq 100 climbed about 0.9% to start
the week. The index is still down more than 6% from its Feb. 12 record
closing high.
The S&P 500 and the Dow, however, clinched all-time highs as early as
last week on bets that stimulus and vaccine rollouts would lead to a
strong rebound in the U.S. economy.
Kansas City Southern jumped about 17% after Canadian Pacific Railway Ltd
agreed to acquire the railroad operator in a $25 billion cash-and-stock
deal to create the first railway spanning the United States, Mexico and
Canada.
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People are seen on Wall St. outside the New York Stock Exchange
(NYSE) in New York City, U.S., March 19, 2021. REUTERS/Brendan
McDermid
At 06:34 a.m. ET, Dow E-minis were down 79 points, or 0.24%, S&P 500
E-minis were up 1.75 points, or 0.04% and Nasdaq 100 E-minis were up
106.75 points, or 0.83%.
Intel Corp, Microsoft Corp and Apple Inc led gains among Dow
components in trading before the bell.
Big U.S. lenders including Goldman Sachs, Citigroup and Bank of
America, which have enjoyed a rally on brightening economic
prospects, slipped about 1% each.
The iShares MSCI Turkey ETF sank about 19% as President Tayyip
Erdogan's decision to oust a hawkish central bank governor sparked
fears of a reversal of recent rate hikes.
(Reporting by Medha Singh in Bengaluru; Editing by Anil D'Silva)
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