By Devik Jain

(Reuters) – Nasdaq futures jumped 1% on Wednesday as technology stocks led a rebound after concerns about inflation and rising Treasury yields drove one of Wall Street’s worst selloff of this year.

Shares of heavyweights Amazon.com Inc (NASDAQ:), Facebook Inc (NASDAQ:), Microsoft Corp (NASDAQ:), Apple (NASDAQ:) and Google-parent Alphabet (NASDAQ:) Inc rose between 1% and 1.3% in premarket trading.

Oil firms including Exxon Mobil (NYSE:) and Chevron Corp (NYSE:) dipped as a rally in crude prices petered out. The S&P energy sector has gained 3.9% so far this week and is on track for its best monthly performance since February.

U.S. stocks ended sharply lower on Tuesday in a broad sell-off, with the benchmark logging its biggest one-day percentage drop since May and the Nasdaq posting its worst daily selloff since March.

The S&P 500 index is also set to break its seven-month winning streak as fears about China Evergrande’s default, potential higher corporate taxes and a sooner-than expected tapering of monetary support by the Federal Reserve clouded investor sentiment in what is usually a seasonally weak month.

In light of signs that the global economy is in a slow recovery, the Fed indicated last week it would tighten its monetary policy. This led to a surge in bond yields and tech stocks sensitive to interest rates.

6.34 AM ET, were up 203 points, or 0.59%, were up 32 points, or 0.74%, and were up 147.25 points, or 1%.

U.S. Senate Republicans blocked a President Joe Biden’s Democrats attempt to prevent a crippling U.S. debt default for a second consecutive day. This was due to partisan tensions that rattled an economy still reeling from the COVID-19 Pandemic.

JPMorgan Chase & Co (NYSE:) Chief Executive Jamie Dimon also cautioned a U.S. default would be “potentially catastrophic” event.

Boeing (NYSE) Co rose 2.5% on the news that its 737 MAX test flight to China’s aviation regulator proved successful. This means the company hopes a two year grounding can be lifted.