In overnight trading on Wednesday, US stock index futures rose slightly, after technology stocks fell again as investors digested the impact of interest rate hikes.
The futures contract linked to the Dow Jones Industrial Average rose 81 points, or 0.24%. S&P 500 index futures rose 0.24%, while Nasdaq 100 index futures rose 0.24%.
The Dow Jones and S&P 500 index rose slightly in regular trading. The 30-stock Dow Jones Index rose about 90 points for the fifth time in the past six trading days, while the Standard & Poor’s 500 Index rose 0.16%, breaking a two-day decline.
At the same time, the Nasdaq Composite Index fell 0.24% for the fourth consecutive trading day. The technology sector fell again on Wednesday, with a cumulative drop of 4% this week, making it the worst-performing S&P sector.
As technology stocks fell, the 10-year US Treasury bond yield reached a high of 1.56% on Wednesday after rising to 1.567% on Tuesday. The rise puts pressure on technology stocks because it makes the promised future cash flow look less attractive.
Investors are also paying attention to the latest headlines in Washington.House of Representatives on Wednesday Passed a bill After Treasury Secretary Janet Yellen told House Speaker Nancy Pelosi on Tuesday that Congress must raise or suspend the debt ceiling by October 18, this will suspend the US debt ceiling.
However, Senate Republicans said they would reject the legislation.
UBS said in a report to clients on Tuesday evening: “Although the political dynamics are still unbalanced, we believe that the US debt ceiling negotiations will be successful in time and the US government shutdown can be avoided.” The company added: “Overall Generally speaking, our basic scenario still envisages steady economic growth and gradually tightening monetary conditions.” Based on these forecasts, UBS recommends that investors prefer stocks rather than bonds.
All major averages this week are firmly at a loss. The Dow Jones Index is expected to fall for the fourth consecutive week in the past five weeks, while the S&P and Nasdaq Composite Index are expected to have their worst week since February.
Wells Fargo pointed out that a correction is expected. The company said in a report to customers on Wednesday: “This is a normal repricing of risks based on higher capital costs and greater market uncertainty.”
In terms of data, the number of people applying for unemployment benefits for the first time in the previous week will be released. Economists expect the printing volume to be 335,000. The Bureau of Economic Analysis will also release its third estimate of GDP for the second quarter on Thursday.
In terms of earnings, Bed Bath & Beyond will report quarterly results before the market opens.
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