Dow Jones futures rise as tech stocks recover from previous session losses. Futures for the Dow Jones Industrial Average gained 0.2%, while S&P 500 futures were up 0.1%. The Nasdaq 100 futures rose by 0.4% indicating a positive open for the technology-heavy index. Investors are anticipating another busy day of earnings reports, including those from Amazon, Twitter, and Mastercard.
Tech stocks have been volatile in recent weeks, and the previous session saw major losses for the sector. The Nasdaq Composite Index dropped 2.6% on Tuesday, its biggest decline since March. The drop came after Treasury Secretary Janet Yellen suggested that interest rates may need to rise to prevent the economy from overheating. Higher interest rates could hurt growth stocks like tech companies by making borrowing more expensive.
However, today’s futures suggest that investors may be regaining confidence in the tech sector. Facebook, Apple, and Amazon are all up around 1% in pre-market trading, while Alphabet, Google’s parent company, is up by 0.7%. Tesla, which has been particularly hard hit in recent weeks, is up by 0.8%.
Investors are also awaiting the latest policy statement from the Federal Reserve, due later today. While the central bank is not expected to change its policies, investors will be looking for clues as to when the Fed may begin to taper its bond-buying program or raise interest rates.
In addition to the Fed statement, investors will be closely watching today’s earnings reports. Amazon is expected to report strong results, driven by continued growth in e-commerce sales. Twitter’s results will be closely watched after the company reported disappointing user growth in its last earnings report. Mastercard’s earnings will provide insight into the health of the financial services industry.
Overall, today’s futures suggest that investors are cautiously optimistic about the market, despite recent volatility. The tech sector, in particular, is showing signs of recovering from the previous session’s losses. However, investors will be closely watching earnings reports and the Fed statement for clues as to where the market may be headed in the coming weeks.