Stock futures flat in overnight trading after tech-led rally
Traders on the floor of the NYSE, April 4, 2022.
Stock futures were flat in overnight trading on Monday after investors bought lower tech stocks following recent weakness.
Dow Jones Industrial Average futures fell 14 points. S&P 500 futures were little changed and Nasdaq 100 futures edged down 0.1%.
The overnight action followed a tech-led rally that saw the Nasdaq Composite rise 1.9%. Twitter shares jumped 27% on its best day after Elon Musk disclosed a 9.2% passive stake in the social media company.
The blue-chip Dow rose about 100 points to start the trading week, while the S&P 500 rose 0.8%, both posting their second straight day of gains.
“In the short term, we believe blind selling has created attractive entry points, particularly in some stocks with high growth potential,” Tony DeSpirito, CIO of US fundamental equities at BlackRock, said in a note.
The new quarter kicked off after major averages ended their worst quarter in two years. Investors await Wednesday’s Federal Reserve meeting minutes for further clues on the central bank’s rate hike path. Meanwhile, the first-quarter corporate earnings season is set to begin next week.
“Markets held up well given the war in Ukraine, continued price pressures and an uncertain global economic outlook, with investors’ buy mentality supporting equity returns,” said Mark Hackett, head of research. in investment at Nationwide.
Investors are also watching oil prices amid supply disruptions stemming from Russia’s invasion of Ukraine. WTI crude jumped more than 4% and traded above $100 a barrel on Monday.