By Devik Jain
(Reuters) – Futures tracking the Nasdaq index fell 1% on Thursday, sliding for seven out of the last eight sessions, as investors rotated out of technology-related stocks into shares that are poised to benefit from an economic rebound later in the year.
Focus will be on the Labor Department’s weekly jobless claims report, which is expected to show fewer Americans filed new claims for unemployment benefits last week.
Apple Inc, Amazon.com Inc, Microsoft Corp, Facebook Inc and Netflix Inc were down between 0.9% and 1.3% before the bell, as traders were cautious about heightened valuations.
Tesla Inc fell 1.9% after a media report that the electric-car maker told workers it will temporarily halt some production at its car assembly plant in California.
U.S. stocks ended higher on Wednesday with the blue-chip Dow hitting record levels as Federal Reserve Chair Jerome Powell calmed market worries about rising U.S. bond yields and a potential spike in inflation.
Testifying before the House of Representatives Financial Services Committee, Powell continued adding weight to the central bank’s promise to get the economy back to full employment, and to not worry about inflation unless prices begin rising in a persistent and troubling way.
Yields on U.S. Treasury bonds have risen recently, pressuring technology-related companies as the United States accelerates its coronavirus vaccination program and plans further fiscal spending.
The S&P 500 growth index has risen more than 2.5% in the month of February, sharply underperforming the value index, which has gained nearly 9% on optimism related to a post-pandemic reopening of the economy.
Citigroup Inc, Goldman Sachs Group Inc, JPMorgan Chase & Co, Morgan Stanley, Wells Fargo & Co and Bank of America Corp were up between 0.6% and 1.2%, tracking a rise in U.S. 10-year Treasury yields.
At 6:57 a.m. ET, Dow e-minis were up 3 points, or 0.01%, S&P 500 e-minis were down 11.75 points, or 0.3%, and Nasdaq 100 e-minis were down 132.75 points, or 1%.
Oil producer Apache Corp gained 1.3% after it reported a smaller-than-expected fourth-quarter loss and raised its spending forecast.
(Reporting by Devik Jain and Shreyashi Sanyal in Bengaluru; Editing by Shounak Dasgupta)
