People walk near the New York Stock Exchange (NYSE) on May 18, 2020 in New York City.
Spencer Platt | Getty Images
U.S. stock futures rose Sunday night after a sell-off in tech stocks led to the market’s first consecutive weekly decline in months.
The Dow Jones Industrial Average futures are trading up 1
The S&P 500 fell 2.5% last week. It was the worst one-week drop in the broader market index since June 26. This decline also marked the first time since May that the S&P 500 closed lower in two consecutive weeks.
These losses were largely caused by a sharp decline in technology, the best performing market sector since the beginning of the year. The S&P 500 tech sector plunged more than 4% on its largest weekly loss since March. Apple, the largest US company by market capitalization, fell more than 7% last week.
“The excessive tech froth of August has been wiped out, but clear and disturbing coverage patterns have developed in its wake as … developed,” Frank Cappelleri, Instinet’s executive director, said in a statement.
To be sure, Jefferies’ Sean Darby thinks this decline in technology could be short-lived.
“There is nothing unpleasant about fundamentals or earnings expectations. A surprise to the upside would come from further dollar weakness, while the emergence of a vaccine and / or a long-term rate hike would hold back performance.” said Darby, a global equity strategist at the company.
Investors are coming into the new week amid diminishing hopes that lawmakers will strike a deal on a new fiscal stimulus.
Senate Majority Leader Mitch McConnell, R-KY, said on Friday the chances of Republicans and Democrats reaching a deal didn’t “look so good right now.” Earlier this month, House Speaker Nancy Pelosi, D-Calif., Said Democrats and the White House had “serious differences” over coronavirus aid.
Meanwhile, the number of coronavirus cases in the United States is growing by 5% or more in 11 states, according to a CNBC analysis of data from Johns Hopkins University. Dr Anthony Fauci, director of the National Institute of Allergies and Infectious Diseases, said last week that recent coronavirus data is “disturbing.”
In company news, ByteDance turned down Microsoft’s offer to buy TikTok’s US assets.
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