People walk past the New York Stock Exchange (NYSE) in New York City on May 18, 2020.
Spencer Platt | Getty Images
US stock futures rose on Sunday evening after a tech sell-off led the market to its first weekly decline in months.
Dow Jones Industrial Average futures were trading 203 points higher, 0.7%. The S&P 500 rose 0.8% and the Nasdaq 100 futures rose 1.1%.
Sentiment was partly bolstered by news that Nvidia had bought chip maker Arm Holdings from SoftBank for $ 40 billion. Nvidia will fund the deal through a combination of cash and common stock.
The S&P 500 fell 2.5% last week. It was the index's worst week-long decline for the broader market since June 26th. This decline also marked the first time since May the S&P 500 closed lower in two straight weeks.
Much of these losses were due to a sharp drop in technology, the best sector of the market yet. The S&P 500 tech sector fell more than 4% for its largest weekly loss since March. Apple, the largest US company by market capitalization, fell more than 7% last week.
"The excessive tech foam from August was wiped away, but as a result, clear and threatening pavement patterns developed like …" said Frank Cappelleri, executive director at Instinet, in a note.
Jefferies' Sean Darby believes, however, that this decline in technology could be short-lived.
"Fundamentals and earnings outlook are not bad. A positive surprise would be continued dollar weakness while the advent of a vaccine and / or a rise in long-term interest rates would hold back performance," said Darby, a global equity strategist with the firm.
Investors enter the new week amid the dwindling hope of lawmakers to reach an agreement on new fiscal stimulus.
Senate Majority Leader Mitch McConnell, R-KY, said Friday the chances of Republicans and Democrats reaching a deal "don't look so good right now". Earlier this month, House spokeswoman Nancy Pelosi, D-Calif., Said Democrats and the White House had "serious differences" when it came to helping with coronavirus.
US coronavirus cases are growing by 5% or more in 11 states, according to a CNBC analysis of the Johns Hopkins University data. Dr. Anthony Fauci, director of the National Institute for Allergies and Infectious Diseases, said last week that the latest coronavirus data was "disruptive".
In company news, ByteDance declined Microsoft's offer to buy TikTok's US operations.
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