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US stock futures falter as the tech rally fades



US stock futures were mixed on Thursday due to the suspension of the rebound in tech stocks and investors preparing for the possibility of greater market volatility.

Futures linked to the S&P 500 slid 0.2% and those linked to the technology Nasdaq index rose 0.4%. The pan-continental Stoxx Europe 600 fell 0.6%.

In out-of-hours trading, the shares in

GameStop

It fell 7.5% after the retailer reported second-quarter fiscal results that did not estimate Wall Street estimates. Shares

AstraZeneca


AZN -1.96%

It rose 0.9% ahead of market after the company’s CEO said a Covid-19 vaccine it is developing with the University of Oxford may still be ready by the end of the year.

Trading day

All time ET

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About 884,000 Americans have applied unemployment benefit in the week ending 5 September, unchanged from the previous week. The labor market has gradually improved after the coronavirus pandemic hit this spring, but new jobless claims remain at historically high levels.

Volatility in big tech stocks like Apple, Amazon.com and Microsoft has dominated the markets in recent days. Tech stocks rose broadly on Wednesday following a three-session selloff that pushed the Nasdaq Composite Index into correction territory. Despite recent bearish moves, the Nasdaq has gained over 20% this year.

The recent decline in tech stocks raised concern that the market, which had risen so sharply over the summer, might be set for a more turbulent time.

“We may see volatility continue just because there are so many factors when you think about the lack of progress in fiscal stimulus in the US and the [Covid-19] chance matters, “said Wei Li, head of iShares EMEA investment strategy at BlackRock.” It’s just hard to think you can put it to bed. “

Apple store Marina Bay Sands in Singapore on Thursday. Shares of Apple have been volatile in recent sessions.


Photo:

Bryan van der Beek / Bloomberg News

Congress remains stuck on a new stimulus package. On Wednesday, Senate Republicans said they would support a reduced $ 300 billion version of their previous $ 1 trillion stimulus plan, including unemployment relief, corporate liability protections, and school funding. Democrats oppose the bill and it is not expected to overcome its first procedural hurdle in the Senate on Thursday.

In European trading, shares in

British Airways

Parent company International Consolidated Airlines Group fell 1.8% after outlining the terms of a planned capital increase to strengthen its balance sheet and reduce debt.

Trade in Asia was mixed, with the Shanghai Composite down 0.6%, while the Korean Kospi and Japan’s Nikkei 225 gained 0.9% each.

Tensions between Washington and Beijing continued to loom over the markets. More than 70% of US companies surveyed by the Shanghai US Chamber of Commerce expect geopolitical turmoil to create operational difficulties for them in the next three to five years, up sharply from about half who said the same thing last year. .

The euro was up 0.3% against the dollar after the European Central Bank said it would keep interest rates unchanged. At the upcoming press conference, investors will hear indications on how a stronger euro recently will affect monetary policy.

In the bond market, the 10-year Treasury yield rose to 0.705%, from 0.702% on Wednesday. Bond yields and prices move in opposite directions.

In commodities, Brent crude oil fell by 1.3% to $ 40.28 a barrel and WTI futures by 1.6% to $ 37.46 a barrel. Data from the American Petroleum Institute released Wednesday eventually showed a surprise growth in US crude oil inventories.

Write to Caitlin Ostroff at caitlin.ostroff@wsj.com

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