Traders on the New York Stock Exchange
Source: NYSE
Futures contracts linked to the main US stock indices rose at the start of Wednesday night’s evening session, after pressure on tech stocks caused the Nasdaq Composite to fall 2% during the regular session.
Dow futures were up 30 points, while contracts linked to the S&P 500 were up less than 0.1%. Futures linked to the Nasdaq 100 were also traded just above the flat line.
The overnight movements came after a wave of sales at the end of the day for high-growth and high-tech stocks during the regular session.
The S&P 500 fell 0.6% after rising to 0.8% during the day, while the high-tech Nasdaq fell 2% to close at its session low. Apple, Facebook and Netflix fell more than 2%, while Tesla fell 4.8%.
The Dow Jones Industrial Average, which surpassed its peers in positive territory for most of the day, fell to the red in the closing seconds of the session. Dow industrialists jumped more than 300 points on their session high.
The Dow’s weakness in the afternoon came when the reopening of deals, such as airlines and cruise operators, reversed the previous strength. Norwegian Cruise Line fell 4.9%, while Royal Caribbean and Carnival fell 1.9% and 2.8%, respectively. Delta and United Airlines also closed the day low.
The pressure on stocks came even as bond yields continued to fall in relation to recent highs. The 10-year Treasury yield fell 3 basis points to 1.61% on Wednesday, falling for the third day after the rate hit its 14-month high last week.
Treasury Secretary Janet Yellen and Federal Reserve President Jerome Powell appeared for a second day of virtual testimony before federal lawmakers. Both reiterated their conviction that, largely thanks to fiscal and monetary stimulus, the US economy will have strong growth in 2021.
“It will be a very, very strong year in the most likely case,” said Powell. “Of course, there are risks to the positive and negative side, but it must be a very strong year from the point of view of growth … In the longer term, we have to increase revenue to support the permanent expenses we want to make.”
Powell and Yellen said on Tuesday that asset valuations appear high in certain areas of the market, but that the financial sector is healthy and equipped to deal with any market turmoil once the stimulus starts to subside.