Equity futures advanced on Thursday, indicating that shares of giant tech companies would rise in the initial bell as investors waited for a new reading of the job market.
Futures linked to the S&P 500 rose 0.7%. Contracts tied to the Nasdaq-100 rose 1.9%, suggesting technology stocks will rebound after the sector slowed on Wednesday. Dow Jones Industrial Average futures rose 0.3%, a day after the blue-chips index closed at a record high.
Investor stock demand has revived as bond markets have calmed down. The yield on 10-year Treasury bills, which moves inversely to the price, fell to 1.502% from 1.520% on Wednesday, setting it in motion for a third consecutive day of falls. Yields rose to 1.594% earlier this week.
Shares have been hit by sharp movements in bond yields, fueled by uncertainty over how the $ 1.9 trillion relief bill approved by the House on Wednesday will affect the U.S. economy.
Concern that the size of the stimulus would raise inflation beyond the Federal Reserve’s comfort zone and cause an increase in interest rates recently led to an increase in yields. That appetite diminished by the shares of technology companies, which had benefited from an extended period of low rates. At the same time, optimism about the economic outlook has reinforced the demand for shares of companies that would benefit from a easing of closures.