Traders on the floor of the New York Stock Exchange
Source: NYSE
Futures contracts linked to major US stock market indices rose at the start of Wednesday night’s session, after pressure on tech stocks, the Nasdaq Composite fell 2% during the regular session.
Dow futures rose 30 points, while contracts tied to the S&P 500 rose less than 0.1%. Futures tied to the Nasdaq 100 were also trading just above the flat line.
Overnight movements occurred after a rash of sales at the end of the day in high-growth stocks and technology during the regular session.
The S&P 500 fell 0.6% after rising to 0.8% during the day, while the Nasdaq, which used a lot of technology, fell 2% to close at a low. the session. Apple, Facebook and Netflix slipped more than 2%, while Tesla fell 4.8%.
The Dow Jones Industrial Average, which had outperformed its peers in positive territory most of the day, fell red in the final seconds of the session. The Dow industrialists had jumped more than 300 points in their peak session.
The weakness of the Dow afternoon came when the reopening of trades such as airlines and cruise operators reversed the previous strength. Norwegian Cruise Line fell 4.9%, while Royal Caribbean and Carnival fell 1.9% and 2.8%, respectively. Delta and United Airlines also ended the day down.
Pressure on equities occurred even as bond yields continued to fall from recent highs. The ten-year Treasury yield fell 3 basis points to 1.61% on Wednesday, and fell for the third day after the rate hit a 14-month high last week.
Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell appeared for a second day of virtual testimony before federal lawmakers. Both reiterated their belief that, thanks in large part to fiscal and monetary stimulus, the U.S. economy will experience marked growth in 2021.
“There will be a very, very strong year, in the most likely case,” Powell said. “Of course, there are upside and downside risks, but it should be a very strong year from the point of view of growth … In the long run, we need to raise revenue to support the ongoing spending we want. do”.
Powell and Yellen said Tuesday that asset valuations appear high in certain areas of the market, but that the financial sector is healthy and equipped to deal with any market turmoil once stimuli begin to fade.