Stock futures are little changed after tech shares continue their sell-off
Traders in New York City work at the New York Stock Exchange (NYSE), November 15, 2021.
Spencer Platt | Getty Images
U.S. stock markets were little affected by Tuesday’s sell-off of tech shares, which was due to rising rates that boosted financial and energy stocks.
Futures on Dow Jones Industrial Average fell by 0.08%. S&P 500 and Nasdaq 100 futures dipped about 0.1%.
After quarterly results, retail stocks suffered a severe hit during extended trading. Gap lost more than 15% while Nordstrom plunged 22%. Each company reported earnings missed for the last quarter.
HP, a computer hardware company, saw its shares rise 7% due to higher earnings and guidance in the first quarter.
Most tech stocks, however, were trading in the red during regular trading. Tech-heavy Nasdaq Composite saw a loss of 0.50% during Tuesday’s session. S&P 500 added 0.17% and bank and energy stocks helped push the Dow Jones Industrial Average 194 points higher.
This divergence was accompanied by Treasury yields. These tend to increase bank stocks, crush tech and other high growth companies. Since Monday’s President Joe Biden’s nomination of Jerome Powell to the Federal Reserve chairman, yields have been increasing.
Rob Haworth from U.S. Bank Wealth Management, senior investment strategist said that “it’s definitely a story with more rotation.” “The market believes the Powell Renomination story is a reopening story. It is leaving aside all concerns about Covid infections rates or the risk they might pose to the economy.”
Investors were scared by the resurgence in Covid-19 Europe on Friday just prior to Powell’s announcement. This pushed tech shares higher.
Trading could slow in the coming days due to the Thanksgiving holiday, but investors will be watching a slew of economic data due out Wednesday, including weekly unemployment claims, a GDP update, personal income, consumer confidence reads and Federal Reserve FOMC minutes.
However, not all companies reported financial results for the quarter. Deere reports before the bell on Wednesday.