(Reuters) – Major US stock indexes headed for higher openings on Tuesday, with the Nasdaq recovering after a strong disagreement in the previous session as US bond yields fell and investors took outdated technology stocks.
Tesla Inc. advanced about 6%, while Apple Inc., Amazon.com Inc., Facebook Inc. and Microsoft Corp. jumped about 2% each in early operations.
Signs that a $ 1.9 trillion coronavirus relief package was closing with final approval led to higher yields on Monday, pushing the high-tech Nasdaq to finish. more than 10% below its February 12 close that confirmed a correction.
10-year U.S. Treasury bond yields eased to 1.54% after hovering near 1313-month highs at 1.613% in the previous session. Yields with a longer date have jumped over the past month, as investors have traded in a faster-than-expected economic rebound and higher inflation.
Higher yields may weigh even more on technology and growth stocks with high valuations as they threaten to erode the value of their long-term cash flows.
“Technology stocks have lagged behind by some sort of rebound after the fall they have had so far, with most investors holding a positive outlook for technology stocks in the medium to long term,” said Michael Sheldon, director of RDM Financial Investments in Westport, Connecticut. .
“The potential wind of the market is if interest rates rise further from now on over the short term … as they have risen too quickly in too little time.”
At 8:17 a.m. ET, the Dow E-minis were up 110 points, 0.35%, the S&P 500 E-minis were up 35.75 points, or 0.93%, and the Nasdaq E-minis were up 100 they increased by 273.5 points, or 2.22%.
Rising yields have accelerated the rotation of “stay home” winners in stocks ready to benefit from an economic reopening, helping the Dow hit the intraday record on Monday.
The global economic outlook has become brighter as vaccine launches gain speed and the United States launches a new package of incentives, said the Organization for Economic Co-operation and Development, which advanced forecasts of the political forum.
Major U.S. lenders, including Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Goldman Sachs, fell about 1% a day after the bank index moved to a new 14-year high.
GameStop rose 11% to $ 215.95 from Monday’s more than 40% increase in the video retailer’s e-commerce strategy and speculation that small investors will pour stimulus controls in the markets.
Reports of Shashank Nayar and Medha Singh to Bengaluru; Edited by Maju Samuel