Nasdaq futures rise as tech selloff calms

FILE PHOTO: The Nasdaq logo is displayed at the Nasdaq Market site in New York, U.S.

Futures tracking the Nasdaq 100 index rose on Friday as a two-day selloff in technology-related stocks halted, while worries about rising coronavirus cases and a patchy economic recovery weighed on S&P 500 and Dow futures.

Wall Street’s three main indexes bounced earlier this week as investors bet on a loose monetary policy by the Federal Reserve, but gains petered out in the absence of firm details on the central bank’s stimulus plan.

The S&P 500 .SPX and the Nasdaq .IXIC have also come under pressure from investors rotating out of high-flying tech-related stocks and into industrial and transportation firms.

But premarket gains on Friday were led by Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Inc AMZN.O, Microsoft Corp MSFT.O, Facebook FB.O and Tesla Inc TSLA.O, which have together dominated Wall Street’s recovery from the coronavirus-led slump in March.

“The market’s in a vacuum right now,” said Thomas Hayes, managing member at Great Hill Capital LLC in New York.

“Anytime you have news or perception that things are going to be delayed or (you have a) slow growth economy, those (technology-related) stocks get bid. You’ll get these technical bounce days when coronavirus cases spike up and money will move back into tech.”

At 8:42 a.m. ET, Dow e-minis 1YMcv1 were up 19 points, or 0.07%. S&P 500 e-minis EScv1 were up 5.75 points, or 0.17% and Nasdaq 100 e-minis NQcv1 were up 60 points, or 0.54%.

Tesla rose 5.0% as two analysts raised their price targets on the electric carmaker’s shares ahead of its highly anticipated “Battery Day” event next week.

Oracle Corp ORCL.N fell 0.4% after weNasdaq futures rise as tech selloff calms reported the U.S. Commerce Department plans to issue an order on Friday that will bar people in the United States from downloading Chinese-owned messaging app WeChat and video-sharing app TikTok starting on Sept. 20.

Power provider PG&E Corp PCG.N shed 0.3% as Chief Financial Officer Jason Wells resigned to join CenterPoint Energy Inc CNP.N as its finance chief.

Of the 11 major S&P indexes, industrials .SPLRCI, materials .SPLRCM and energy .SPNY have gained more than 2% so far this week, while communication services .SPLRCL and consumer discretionary .SPLRCD have posted the biggest declines.

Volatility is likely to be higher on Friday related to a quarterly expiration of U.S. stock options, stock index futures and index option contracts, known as “quadruple witching”.

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