Finance News

Inventory futures barely change after tech shares resume their sell-off

Traders operate on the floor of the New York Stock Exchange (NYSE) in New York City on November 15, 2021.

Spencer Platt | Getty Images

US stock futures changed little on Tuesday night after technology stocks sold out for the second day in a row, under pressure from rising interest rates that boosted energy and financial stocks.

Dow Jones Industrial Average futures fell 0.1%. The futures on the S&P 500 and Nasdaq 100 were also about 0.1% lower.

Retail stocks took a hit in expanded trading following the quarterly results. Nordstrom plunged 22% and the Gap fell more than 15%. Both companies reported loss of earnings for the last quarter.

Computer hardware company HP stocks rose 7% on the back of corporate earnings that beat sales and profit lines and higher earnings guidance for the first quarter.

In regular trading, however, most tech stocks were in the red. The tech-heavy Nasdaq Composite lost 0.50% in Tuesday's session, while the S&P 500 rose 0.17% and banking and energy stocks helped push the Dow Jones Industrial Average 194 points up.

The divergence in sectors has been accompanied by government bond yields, which have tended to boost bank stocks and crush tech and other high-growth companies. Yields have risen since President Joe Biden named Jerome Powell chairman of the Federal Reserve Monday.

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"It's certainly a story of more rotation," said Rob Haworth, senior investment strategist at U.S. Bank wealth management. "The market is now with the Powell renomination and believes this is a reopening story that puts aside any risks or concerns we might have about rising Covid infection rates."

On Friday, just before Powell's renomination announcement, investors were startled by a Covid-19 resurgence in Europe that propelled tech stocks higher.

Trading could slow in the coming days due to the Thanksgiving holiday, but investors will be watching a range of economic data released on Wednesday, including weekly jobless claims, a GDP update, personal income, consumer confidence, and Federal FOMC minutes Reserve.

Most, if not all, companies have released their third quarter financial results. Deere is due to report to the bell on Wednesday.

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