A Nasdaq market maker works on the Nasdaq Market website in New York, May 2, 2019.
Brendan McDermid | Reuters
Equity futures traded overnight on Tuesday after a sharp slump in technology stocks amid declining bond yields.
The future on the Dow Jones industrial average has changed little. S&P 500 futures and Nasdaq 100 futures also held steady.
The Nasdaq Composite climbed 3.7% on Tuesday to be the best day since November as investors streamed back into popular growth after a recent setback. Tesla rose 19.6% for its biggest one-day doll since February 2020. Apple and Facebook each achieved more than 4%, while Amazon achieved 3.8%.
The technological benchmark fell in the correction area on Monday, or more than 10% lower than the recent high.
“Corrections … create natural turning points for traders,” said Chris Larkin, managing director of trading and investment products at E-Trade Financial. “Let’s not forget that less than a year ago, traders interpreted one of the biggest negative macro events in market history as a buying opportunity, so there is little reason to think differently given all the positive signals around us today.”
The setback in technology coincided with a decline in bond yields. The ten-year treasury yield fell more than 5 basis points to 1.54% after trading at 1.62% on Monday.
Investors will monitor Wednesday’s inflation data to see if the price pressure gets hot. Higher inflation expectations have led to higher yields of bonds, placing risks on assets, particularly high-growth technology stocks.
The February consumer price index is expected to rise 0.4% in February, or 1.7% higher than a year ago, according to economists surveyed by the Dow Jones. The data will be presented at 08:30 ET. This compares with an increase of 0.3% in January and an increase of 1.4% on an annual basis.
Elsewhere, House Democrats want to pass the $ 1.9 billion relief bill for coronavirus on Wednesday. President Joe Biden is expected to sign the legislation in time to lower a deadline on Sunday for the renewal of unemployment benefits programs.