Stock futures are down slightly following tech sector sell-off

Stock futures are down slightly following tech sector sell-off


Traders work on the ground of the New York Stock Exchange (NYSE) in New York City, U.S., December 2, 2021.

Brendan McDermid | Reuters

U.S. inventory futures have been in damaging territory early Friday morning as traders digested a buying and selling day during which tech names struggled and dragged the remainder of the market down with them.

Futures on the Dow Jones Industrial Average have been down 38 factors, or 0.11%. S&P 500 futures fell 0.26% and Nasdaq 100 futures have been down 0.43%.

In common buying and selling Thursday, the tech-focused Nasdaq Composite fell 2.47% for its worst day since September. The different averages noticed extra modest losses. The Dow fell 0.08%, whereas the S&P 500 misplaced 0.8%.

The strikes erased a rally in Wednesday’s session that adopted the Fed’s announcement of a extra aggressive plan to wind down its asset purchases, and that it’s taking a look at hike charges in 2022.

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As traders continued to digest the information, in addition to the impression of each rising inflation and the unfold of the omicron Covid variant, they seemed to be rotating from high-growth tech names to client staples.

“As the Federal Reserve turns more hawkish and expectations for higher interest rates rise, investors are lowering exposure to growth stocks,” stated Jim Paulsen, chief funding strategist at The Leuthold Group. “Typically, growth stocks exhibit a higher duration compared to value stocks because a higher proportion of their cash flows will be received in the more distant future.”

Bank shares have been among the many greatest gainers of the day. Bank of America and Wells Fargo added greater than 2%. Goldman Sachs and JPMorgan rose greater than 1%. Shares of Verizon jumped greater than 4% as one of many prime performers within the Dow.

Weekly jobless claims got here in slightly increased than anticipated Thursday, and housing begins for November have been stronger than economists projected after declining within the prior month.

On Friday, Darden Restaurants and Winnebago are scheduled to report quarterly earnings outcomes earlier than the bell.

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