(For a live Reuters blog on the US, UK and European stock markets, click LIVE / or type LIVE / in a news window.)
* Cool bank stocks will rally as bond yields will be easy
* Tech stocks are gaining ground after a recent weakness
* GameStop picks up on 40% increase on Monday
* Futures: Dow 0.35%, S&P 0.93%, Nasdaq 2.22% (Add comment, details; update prices)
March 9 (Reuters) – Major U.S. stock indices were set to open higher Tuesday with the Nasdaq set to rebound after a steep sell-off in the previous session, while bond yields US pulls back and investors pick up knock-down technology stock.
Tesla Inc rose about 6%, while Apple Inc, Amazon.com Inc, Facebook Inc and Microsoft Corp jumped about 2% each in early trading.
Signs of a $ 1.9 trillion coronavirus relief package closing in on a final deal led to a spike in yields Monday, pushing the tech-heavy Nasdaq to an end more than 10% lower than its Feb. 12 ‘high closure confirmed correction.
US 10-year financial bond yields fell to 1.54% after approaching 13-month highs of 1.613% in the previous session. Yields with a longer date have jumped over the past month as investors priced in a faster-than-expected economic reversal and higher inflation.
Higher yields can put even greater pressure on technology stocks and growth with high valuations, as they threaten to erode the value of long-term cash flows.
“Technical stocks are late for some sort of kick after the downturn they have experienced so far with most investors maintaining a positive view of technical stocks over the medium to long term. time, ”said Michael Sheldon, chief investment officer at RDM Financial in Westport, Connecticut.
“The potential headache for the market is if interest rates rise further from this period over the short term … because they have risen too fast in too little time. ”
At 8:17 a.m. ET, the Dow E-minis was up 110 points, or 0.35%, the S&P 500 E-minis was up 35.75 points, or 0.93% and the Nasdaq 100 E-minis was up 273.5 points, or 2.22%.
The rise in yield has accelerated the shift from “stay at home” winners to stocks that are expected to benefit from economic reopening, helping the Dow-chip Dow achieve a record international high Monday.
The global economic outlook has clarified how vaccine distribution is gaining momentum as the United States launches a major new stimulus package, the organization for Economic Cooperation and Development said, walking the forum’s forecasts policy.
Major US lenders including Corp of Bank of America, Citigroup Inc, JPMorgan Chase & Co and Goldman Sachs slipped around 1% daily after the bank’s index jumped to a new 14-year high .
GameStop rose 11% at $ 215.95, building on Monday’s rise of more than 40% on the video vendor’s e-commerce strategy and profitability that small investors pour incentive analytics into markets. (Reporting by Shashank Nayar and Medha Singh in Bengaluru; Editing by Maju Samuel)