U.S. stock futures rose Wednesday, with big technology stocks poised to erase some of this week’s losses.
Futures tied to the Dow Jones Industrial Average advanced 0.7%, setting up the blue-chips index for a third consecutive day of gains. Contracts linked to the S&P 500 climbed 0.8%, a day after it slid 0.1%. The mixed picture from Tuesday reflects investors rotating out of this year’s best-performing growth stocks and into cyclical sectors such as manufacturing and energy.
Futures linked to the Nasdaq-100 climbed over 1%, signaling a potential recovery in the tech sector after the opening bell. Facebook , Apple, Amazon.com , Netflix and Google parent Alphabet—the so-called FAANG stocks—and Microsoft edged higher in premarket trading.
Most of those stocks, which powered markets higher through 2020, took a drubbing earlier this week as investors cheered progress toward a Covid-19 vaccine and turned their focus to stocks that had fared poorly.
“What we are seeing now is the classic saying that in the short term, the market is a voting machine, and in the long term, it is a weighing machine,” said Altaf Kassam, European head of investment strategy and research at State Street Global Advisors. “What we saw in the tech sector was that it was the FAANGs that bore the brunt of the sell off, but more broadly, tech didn’t do that bad. That was the knee-jerk reaction.”