Stock futures advanced on Thursday, indicating that the shares of tech giant companies would rise on the opening bell, while investors awaited a new reading on the labor market.
Futures linked to the S&P 500 rose 0.7%. Contracts linked to the Nasdaq-100 rose 1.8%, suggesting that technology stocks will recover after mild declines for the sector on Wednesday. Dow Jones Industrial Average futures contracts rose 0.3%, a day after the blue chip index closed at a record high.
Investor demand for shares was reactivated as the bond markets calmed down. Yield on 10-year Treasury notes, which moves inversely in price, fell to 1.497% from 1.520% on Wednesday, putting it underway for the third consecutive day of declines. Yields rose to up to 1.594% earlier this week.
The shares were affected by sudden movements in bond yields, fueled by uncertainty about how the $ 1.9 trillion bailout bill approved by the House on Wednesday will affect the US economy.
Concerns that the size of the stimulus would raise inflation beyond the Federal Reserve’s comfort zone and trigger an increase in interest rates recently have pushed yields up. This has undermined the appetite for shares of technology companies, which have benefited from a prolonged period of low rates. At the same time, optimism about the economic outlook has increased demand for shares in companies that would benefit from easing the blockages.