Stock futures add to gains following Nasdaq rebound
How can investors position for volatility in the market?
Belpointe chief strategist David Nelson and New Street Advisors Group CEO and CIO Delano Saporu discuss their outlooks for the stock market.
U.S. equity futures are trading higher, adding to Tuesday's gains sparked by the Nasdaq's best session in more than four months.
The major futures indexes suggest a rise of 0.2% when the Wednesday trading session begins.
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Investors will get to examine inflation on the retail level when the the Bureau of Labor Statistics releases the February report on consumer prices. Expectations are that prices rose 0.4%, slightly above the previous month’s 0.3% increase. On a year-over-year basis watch for prices to jump 1.7%, up from January’s 1.4% rise.
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Asian stock prices followed Wall Street higher on Wednesday following a rally for major tech companies.
The Nikkei 225 in Tokyo advanced 0.1%, the Hang Seng in Hong Kong added 0.5% and China's Shanghai Composite Index was off 0.1%.
Wall Street's benchmark S&P 500 index closed up 1.4%, led by gains for Apple, Amazon and other tech majors. The Nasdaq composite index, dominated by tech shares, surged 3.7% for its biggest gain in four months.
Markets have been adjusting to a rise in long-term interest rates in the bond market, which has pulled money out of stocks. A reversal in bond market trends at least temporarily sent investors back to companies they hope will thrive after the coronavirus pandemic ends.
The yield on the benchmark 10-year notes slipped to 1.54%.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 31832.74 | +30.30 | +0.10% |
| SP500 | S&P 500 | 3875.44 | +54.09 | +1.42% |
| I:COMP | NASDAQ COMPOSITE INDEX | 13073.824517 | +464.66 | +3.69% |
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On Wall Street, the S&P 500 rose Tuesday to 3,875.44. Communication companies and those that rely on consumer spending contributed to the increase. Financial, energy and industrial stocks lagged the broader market.
Apple rose 4.1%, chipmaker Nvidia climbed 8% and Tesla jumped 19.6% for the biggest gain in the S&P 500.
The Dow Jones Industrial Average, which is weighted less toward tech, rose 0.1% to 31,832.74.
The Nasdaq advanced to 13,073.82. Despite that, the index is 7.2% below its Feb. 12 high. On Monday it closed 10% below its peak in what is known as a correction on Wall Street.
Financial sector stocks, which had benefited from the rise in bond yields, were the biggest decliners Tuesday. Bank of America fell 2.2%, while American Express slid 3.4%. Banks and credit card issuers tend to do well when interest rates are rising because they can charge higher rates.
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Investors are betting the $1.9 trillion in coming government stimulus will help lift the U.S. economy out of its coronavirus-induced malaise. The package set for final approval in the U.S. House on Wednesday provides direct payments of up to $1,400 for most Americans and extends emergency unemployment benefits that help to support consumer spending, the economy's main engine.
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In energy markets, benchmark U.S. crude slipped 4 cents to $63.95 per barrel in electronic trading on the New York Mercantile Exchange. The contract sank $1.04 on Tuesday to $64.01. Brent crude, used to price international oils, declined 12 cents to $67.40 per barrel in London. It retreated 72 cents the previous session to $67.52.
The Associated Press contributed to this article.
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