Technology stocks are poised to make a rebound, with Nasdaq futures pointing up in the Tuesday premarket after another big rout on Monday, as the market expects President
$1.9 trillion fiscal stimulus package to be signed into law this week.
In Asia, Tokyo’s
rose 0.99%, while Hong Kong’s
lifted 0.81%. The
Shanghai Composite Index
tumbled 1.82%. The
in London was up around 0.4%, while the
in Paris was 0.1% higher and Frankfurt’s
lifted 0.3% further into record high territory. The U.S. premarket looked set for a strong open, with Dow futures pointing up near 200 points after the
rallied more than 300 points to close at a record high of 31,802 on Monday.
Following the green light from the Senate on Saturday, Biden’s stimulus package is set to be approved in the House of Representatives on Tuesday, before the president signs it into law.
The economic boost has been long-anticipated by markets, but investor concerns remain focused on the recent selloff in tech stocks, set against the backdrop of rising bond yields. The tech-heavy Nasdaq has turned down over the past month, with the
index falling near 11% since mid-February, as investors rotated into cheaper stocks. A bad day for tech stocks on Monday came as markets more broadly enjoyed a buoyant day.
“Even though we’ve edged back into positive territory, it is becoming increasingly difficult to interpret what effect the continued volatility in tech stocks could have on wider sentiment after the Nasdaq’s big falls yesterday,” said Michael Hewson, an analyst at CMC Markets.
“U.S. 10-year yields have softened a little overnight, which could offer a brief respite in the short term for the Nasdaq, as well as markets in general, however any rebound in the Nasdaq from here could be used as an opportunity to sell into, in anticipation of further declines, if yields continue to head higher,” Hewson added.
Chinese state funds have stepped in to buy stocks amid a worsening bear market, according to a report from Bloomberg. The Shanghai Composite Index ended the day 1.82% lower and is down more than 9% since highs in late February. The report said that the funds stepped in to add stability to markets during the National People’s Congress in Beijing, which is currently under way.
Elevated oil prices have major oil stocks continuing their climb higher. Benchmark Brent crude rose more than 1.2%, passing the $69 per barrel mark after touching $70 on Monday. Shares in
But metals and mining stocks represent the other side of the commodities seesaw. Industrial metal prices have fallen, with copper down 1.5% and iron ore futures for April down near 6%. Shares in London-listed
Domino’s Pizza Group,
the midcap FTSE 250-listed U.K. franchisee of the American pizza company, jumped more than 14% after full-year results firmly beat expectations. The company also announced an £88 million return to shareholders through dividends and buybacks.
an automotive parts manufacturer, was a major faller in German trading following the release of full-year results. The shares were more than 6% lower after the company said sales fell from €44.5 billion in 2019 to €37.7 billion in 2020.
On the economic front, the National Federation of Independent Business will release its Small Business Optimism Index for February.
It’s a light day for U.S. earnings, with tax preparation company
reporting results after the close. In wider corporate news, entertainment giant
will hold a shareholders meeting today, and both energy corporation
and spots betting company
have an investor day.