Futures tick higher as tech shares recover from selloff, cyclicals rise

[October 05, 2021] By Shreyashi Sanyal

(Reuters) - U.S. equity index futures rose on Tuesday as technology shares recovered from a sharp selloff in the previous session, while economy-sensitive cyclical stocks were in favor ahead of the closely watched monthly payrolls data later in the week.

High-growth stocks including Apple Inc, Amazon.com Inc, Microsoft Corp and Alphabet Inc rose between 0.3% and 0.7% in premarket trading.

Facebook was up 1.5% after taking a beating a day earlier, when its app and its photo-sharing platform Instagram were down for hours before being restored late in the evening.

Most technology stocks were hammered on Monday as U.S. Treasury yields ticked higher amid concerns about a potential U.S. government debt default. [US/]

President Joe Biden said the federal government could breach its $28.4 trillion debt limit in a historic default unless Republicans join Democrats in voting to raise it in the two next weeks.

Cyclical stocks held their ground including those of banks, with Goldman Sachs Group Inc, Bank of America Corp and Morgan Stanley rising between 0.8% and 1%.

Industrial conglomerate 3M Co added 0.7%, while oil giant Chevron Corp gained 0.6%.

Investors are now looking ahead to the release of September employment data on Friday that could pave the way for the tapering of the U.S. Federal Reserve's asset purchase program.

Adding to bets on further tightening of monetary policy was recent data, which showed increased consumer spending, accelerated factory activity and elevated inflation growth.

At 6:51 a.m. ET, Dow e-minis were up 96 points, or 0.28%, S&P 500 e-minis were up 12 points, or 0.28%, and Nasdaq 100 e-minis were up 43.25 points, or 0.3%.

Johnson & Johnson edged 0.6% higher after submitting data to the U.S. Food and Drug Administration for emergency use authorization of a booster shot of its COVID-19 vaccine in people aged 18 years and older.

(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Anil D'Silva)

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