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U.S. stock futures pointed to gains for Wall Street on Thursday, notably led by technology stocks, which were particularly hard hit after stronger-than-expected consumer prices spooked investors.
Signs that troubled China real estate group Evergrande has again avoided a default were also credited as underpinning gains for futures.
How are stock-index futures trading?
-
S&P 500 futures
ES00,
+0.36%
rose 0.3% to 4,657 -
Dow Jones Industrial Average futures
YM00,
+0.11%
rose 0.1% to 36,028 -
Nasdaq-100 futures
NQ00,
+0.66%
gained 0.6% to 16,078
On Wednesday, the Dow Jones Industrial Average
DJIA,
fell 240 points, or 0.66%, to 36080, the S&P 500
SPX,
declined 39 points, or 0.82%, to 4647, and the Nasdaq Composite
COMP,
dropped 264 points, or 1.66%, to 15623.
What’s driving the market?
Stocks tumbled Wednesday after October consumer prices surged 0.9%, well above forecast, and annual inflation climbed 6.2%, a near three-decade high. Sparking some concerns, the Federal Reserve may have to act faster and more aggressively to rein in inflation, as investors fled to gold, the dollar and cryptocurrencies.
Hardest hit was the Nasdaq Composite, which saw its worst session since Oct. 4 — as its technology and growth-geared stocks are viewed as more sensitive to higher interest rates. Investors were also dealing with a poorly received 30-year government bond auction.
Bond markets are closed for the Veterans Day holiday, but Wednesday saw the 10-year
TMUBMUSD10Y,
and 30-year Treasury note
TMUBMUSD30Y,
yields surge. Gold prices continued to push higher, after the biggest gains since mid-June on Thursday, while the dollar also rose.
One lift for sentiment appeared to come from China’s property sector. “Chinese equities are up 2% today on the news that the battled real-estate developer Evergrande
3333,
managed to pay overdue interest on three bonds worth $148 million,” said Saxo Bank’s chief investment officer, Steen Jakobsen, who noted that was also aiding sentiment for U.S. equity futures.
A softer stance from officials there on the sector also helped rally those stocks, said Marios Hadjikyriacos, senior investment analyst at XM, in a note to clients. “Beijing is apparently prepared to relax the rules around how much leverage property developers can take on, allowing distressed companies some breathing room,” he said.
Read: China’s Evergrande once again sidesteps default, while sector rallies on signs of Beijing ease
What companies are in focus?
-
Tesla Inc.
TSLA,
+4.34%
shares rose more than 3% in premarket trading. Securities and Exchange Commission fillings on Wednesday afternoon showed Musk selling more than 4.5 million shares for close to $5 billion. -
Walt Disney Co.
DIS,
-0.38%
stock is down more than 4% after the entertainment giant disappointed on theme park revenue and subscriber numbers for its Disney+ streaming service. -
Beyond Meat Inc.
BYND,
-3.58%
shares tumbled 18% after a weak quarter and poor outlook from the plant-based burger maker. -
Lordstown Motors Corp.
RIDE,
-2.28%
shares rallied 13% after the electric-vehicle maker announced a $230 million deal to sell its plant to Foxconn. -
SoFi Technologies Inc.
SOFI,
-7.77%
stock climbed 16% after the financial-technology company’s better-than-expected earnings, strong member growth and product uptake numbers.
How are other assets trading?
-
The ICE U.S. Dollar Index
DXY,
+0.15% ,
a measure of the currency against a basket of six major rivals, rose 0.16%. -
The U.S. benchmark crude contract
CL00,
-1.04% CLZ21,
-1.04%
fell 5 cents to $81.27 a barrel. Gold futures
GC00,
+0.99%
climbed $15, or 0.9%, to $1,863. -
The Stoxx Europe 600
SXXP,
+0.13%
rose 0.1%, while London’s FTSE 100
UKX,
+0.37%
rose 0.4%. -
Hong Kong’s Hang Seng Index
HSI,
+1.01%
rose 1% and China’s CSI 300 Index
000300,
+1.61%
rose 1.6%, while Japan’s Nikkei 225
NIK,
+0.59%
gained 0.6%.
