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Big
technology and growth companies led the rebound in premarket
trading, with Microsoft Corp, Apple Inc, Nvidia Corp and Tesla
Inc up between 1.8% and 3.4%.
Home Depot Inc added 3.7% after it raised its full-year sales
forecast as demand for home improvement tools and building
materials holds up.
United Airlines Holdings Inc rose 4.7% after the carrier raised
its current-quarter revenue forecast, underscoring a boom in
travel demand.
However, Dow component Walmart Inc fell 4% after the retail
giant cut its annual profit forecast, signaling a bigger hit to
margins from surging costs.
U.S. retail sales data for April is due at 08:30 a.m. ET.
In Europe and Asia, shares jumped as Shanghai achieved the
long-awaited milestone of three straight days with no new
COVID-19 cases outside quarantine zones, raising hopes that
restrictions might be eased. [MKTS/GLOB]
Meanwhile, U.S.-listed shares of Chinese firms rose as a meeting
between Chinese Vice-Premier Liu He and tech executives,
currently underway, lifted expectations that Beijing's tech
sector regulatory crackdown might ease.
A positive first-quarter earnings season has been overshadowed
by worries about the Ukraine war, soaring inflation, COVID-19
lockdown in China and aggressive policy tightening by central
banks.
The S&P 500 has declined 3% and the Nasdaq 5.5% so far in May,
due to losses in growth stocks.
A slew of Federal Reserve policymakers, including Chair Jerome
Powell, are scheduled to speak later in the day and their
comments would be parsed for clues on the path of future
interest rate hikes.
Traders now see a nearly 84% probability of a 50-basis point
rate hike in June.
At 06:50 a.m. ET, Dow e-minis were up 469 points, or 1.46%, S&P
500 e-minis were up 68 points, or 1.7%, and Nasdaq 100 e-minis
were up 251 points, or 2.05%.
Among other stocks, Advanced Micro Devices gained 4% after Piper
Sandler upgraded the semiconductor designer's stock to
"overweight".
Citigroup jumped 5.3% after Warren Buffett's Berkshire Hathaway
disclosed a nearly $3 billion investment in the U.S. lender.
Take-Two Interactive Software gained 7.4% after the Grand Theft
Auto" publisher posted upbeat fourth-quarter profit.
(Reporting by Amruta Khandekar and Devik Jain in Bengaluru;
Editing by Arun Koyyur)
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