S & P 500 futures are up slightly despite recent tech stock sales and Bitcoin weekend routs

S & P 500 futures were even higher after losing a week on Wall Street as investors abandoned their shares amid concerns over the new Omicron Covid variant and the Federal Reserve’s policy tightening move.

Sunday’s Nasdaq stock futures were sluggish as investors continued to rethink their ownership of highly rated tech stocks after Bitcoin’s sharp fall over the weekend.

Futures contracts related to the Dow Jones Industrial Average rose 163 points, or 0.5%. S & P 500 futures were 0.35% higher. Nasdaq 100 futures were floating around the flat line.

The Dow and S & P 500 fell 0.17% and 0.84% ​​on Friday, respectively. The Nasdaq Composite index slid 1.92%, resulting in poor performance.

Tesla was Friday’s tech-heavy Nasdaq’s biggest resistance, with electric car company stocks declining by more than 6%.

Cathie Wood’s flagship Ark Innovation Fund has fallen by more than 5%, and all of the fund’s holdings are in the bare market, with the exception of two. Teladoc Health, Zoom Video, Roku, Palantir, and Twilio are some of the names that recorded sudden losses.

Mass sales of tech stocks have expanded into the world of cryptocurrencies, whose prices have fallen. Bitcoin traded on Friday morning for about $ 57,000, but by Saturday it plummeted to about $ 43,000. By Sunday, the world’s largest cryptocurrency had recovered some of its losses, but was still trading below the major $ 50,000 level.

Unexpected slower employment growth also contributed to Friday’s broader market sales. Non-farm payrolls increased by 210,000 last month, the Ministry of Labor said Friday, which was lower than expected by the 573,000 economists surveyed by Dow Jones.

“Softer payroll printing pulled the rug under risk sentiment,” TD Securities said in a note to clients Friday. Yields on 10-year government bonds fell to 1.335%, the lowest since September 21, as investors escaped safely.

The unemployment rate was 4.2%, which was higher than expected from 4.6% in October. According to Dow Jones, economists predicted a 4.5% read.

Jeffrey Buchbinder, Equity Strategist at LPL Financial, said: “Omicron may hold back employment a bit next month or two, but we are confident in the strong employment growth and above-average growth expectations of the US economy in 2022,” he added.

Friday’s sell ended the volatile week of the major average as investors evaluated new information about the Omicron variant.

The Dow has recorded four consecutive negative weeks for the first time since September 2020, with all three major averages ending the week in the red. Both the S & P and the Nasdaq Composite have fallen for the second straight week.

The name of the small cap was particularly hard hit, and the Russell 2000 fell 3.86% that week.

“Despite the flat year forecasts for the S & P 500, market pockets, including small caps, are still bullish,” Bank of America said in a note to clients on Friday. “Small caps are more domestic, exposed to recovery in service spending, are larger beneficiaries of fixed investment / reshoring, and are cheaper than large caps,” the company added.

However, Bank of America said the potential rise in small caps depends on Covid’s case being under control.

Omicron variants are currently found in at least 15 states in the United States, CDC director Dr. Rochelle Walensky told ABC News on Sunday.

“We know there are dozens of cases and we track them closely, and as we hear about more and more possible cases every day, that number can grow. There is sex, “she said” this week. “

S & P 500 futures are up slightly despite recent tech stock sales and Bitcoin weekend routs

Source link S & P 500 futures are up slightly despite recent tech stock sales and Bitcoin weekend routs

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