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Nasdaq Futures Down 175 Pts; Inflation Worries Drag Tech Sector Lower

Stock MarketsMay 11, 2021 06:56AM ET
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© Reuters.

By Peter Nurse   

Investing.com - U.S. stocks are seen opening sharply lower Tuesday, with investors continuing to clobber the heavily-weighted tech sector on rising inflation worries.

At 7 AM ET (1200 GMT), the Dow Futures contract was down 165 points, or 0.5%, S&P 500 Futures traded 32 points, or 0.8%, lower, and Nasdaq 100 Futures dropped 175 points, or 1.3%.

The tech-heavy Nasdaq Composite closed sharply lower Monday, down 2.6% at the session’s low, as investors deserted the mega cap high growth stocks, which were behind much of the index’s gains over the last year.

This selloff is expected to continue Tuesday on fears that the pace of inflation will eventually lead the Federal Reserve to tighten its ultra easy monetary policy before its current guidance.

The energy sector will also be in focus as the shutdown of the nation’s biggest fuel pipeline by hackers entered its fifth day, raising concerns about price spikes heading into the summer driving season.

Colonial Pipeline said Monday it expects to "substantially" restore operational service by the end of the week, but its website was down on Tuesday as it continues to deal with the cyberattack.

Gasoline futures on the New York Mercantile Exchange dropped 0.2% to $2.1300 a gallon Tuesday, but reports already point to a shortage of supply in the southeastern United States, a region that relies heavily on the Colonial system.

U.S. crude futures traded 0.7% lower at $64.48 a barrel, and the Brent contract fell 0.6% to $67.90.

Later in the session, the Organization of Petroleum Exporting Countries will publish its monthly oil market report, while the industry body American Petroleum Institute will report its weekly inventory levels of US crude oil, petrol and distillate stocks.

In the corporate sector, the likes of Electronic Arts (NASDAQ:EA), Chesapeake Energy (NYSE:CHK), Hanesbrands (NYSE:HBI) and Palantir Technologies (NYSE:PLTR) will deliver earnings results on Tuesday.

Other companies in the spotlight, aside from the major tech stocks, include Simon Property (NYSE:SPG), which lowered its full-year profit per share forecast on Monday, and Callaway Golf (NYSE:ELY), which said demand for its products has never been higher.

The major economic data release will be the JOLTs job opening number, at 10:00 AM ET (1400 GMT), particularly after Friday’s soft April nonfarm payrolls release. This is expected to show 7.5 million openings, closing in on the record high seen in 2019.

There are also a number of speeches from Federal Reserve officials scheduled Tuesday, starting with New York Fed President John Williams (NYSE:WMB), before Lael Brainard, Raphael Bostic, Mary Daly and Patrick Harker chip in.

Additionally, gold futures rose 0.2% to $1,840.55/oz, just off a three-month high, while EUR/USD traded 0.3% higher at 1.2160.

 

Nasdaq Futures Down 175 Pts; Inflation Worries Drag Tech Sector Lower
 

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Comments (13)
Peter Trade
PeteM1969 May 11, 2021 11:56PM ET
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The market is a set up and these sell offs are carefully constructed by criminals .. the excuses they use are just to make you think there is a reason when it was planned all along
Mahfuza Nazarova
Mahfuza Nazarova May 11, 2021 9:37AM ET
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Assalom aleykum
Stark Stal
Stark Stal May 11, 2021 8:32AM ET
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The F. happened with the roaring ekonomi? lifted restrictions? these rats just seek anyth to futher lottning ppl.
king michael
king michael May 11, 2021 8:24AM ET
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Nasdaq is dropping and will keep drop in the next few months or years. The worst recession is in sight. As Trump has destroyed US credit, FED has borrow $ from 10 more years of future, no one will and able to save this economy. National bankruptcy can happen anytime in the next few years.
Victor Holiday
Victor Holiday May 11, 2021 8:24AM ET
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whose in charge currently?
Peter Trade
PeteM1969 May 11, 2021 8:24AM ET
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Ha ha ha
Jimmy Smith
Jimmy Smith May 11, 2021 8:18AM ET
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Biden's America.
Ma Am
Ma Am May 11, 2021 8:18AM ET
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This has everything to do with the federal reserve...
CT OREN
CT OREN May 11, 2021 7:59AM ET
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Hope market decline further and enters into bear market. Dont give us fake hopea everytime.
Prince Glory
Prince Glory May 11, 2021 7:49AM ET
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can NASDAQ crash?
Lars Hellman
LarsH May 11, 2021 7:49AM ET
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CRASHDAQ
Fernando Lazarini
Fernando Lazarini May 11, 2021 7:40AM ET
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If there was really inflation worries the 10y US Treasuries should be sky rocketting. This must be just a technical move.
Prince Glory
Prince Glory May 11, 2021 7:40AM ET
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true
king michael
king michael May 11, 2021 7:34AM ET
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With $22 trillion GDP and over $27 trillion of national debt which also grows about $4 trillion a year. FED has run out of gas and has been talking to rollback the printing $ policy. The government has been keep tight the policy preventing US tech companies to sell very high profit margin products to other countries. All those are pushing this country to bankruptcy soon. Market will drop to near zero and an bankruptcy wave is on the way in tech sectors.
Expressions Productions
Expressions Productions May 11, 2021 7:34AM ET
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I don’t know what nonsense you are spewing by alledging Government is restricting tech companies to sell high profit products to foreign countries, this is utter rubbish. All leading tech comanies are global operating in each region as an autonomous local extension thus no direct export from US. Your software development hub is India, the hardware is China. What do you priduce here locally as far as technology nothibg. We have R&D sales, marketing and corporate communications here in the US. Only country right now with US, EU, UK and AZN is Iran. Nasdaq will not crash, and tech giants will not file bankcruptcy. This is all about greedy market makers, FEDs and SEC goons attempt to wipe out emerging middle class. They do not want an average person to be able to make sound investments. This is all BS i suggest clear out your investments in 401K, savings and equities and invest in Crpyto.
James Boyer
James Boyer May 11, 2021 7:34AM ET
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nonsense
James Boyer
James Boyer May 11, 2021 7:34AM ET
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lol ppl say anything
James Boyer
James Boyer May 11, 2021 7:34AM ET
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lol ppl say anything
hojae yun
hojae yun May 11, 2021 7:29AM ET
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Finally a time for correction or rather crash should come
CT OREN
CT OREN May 11, 2021 7:29AM ET
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I hope it is market crash rather
Nick Burns
Nick Burns May 11, 2021 7:28AM ET
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the clouds are getting dark sky must be falling ...quick sell everything ... in other words just finally using any reason to sell
Mehdi Miri
Mehdi Miri May 11, 2021 7:28AM ET
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Muhammad Shabbir
Muhammad Shabbir May 11, 2021 7:26AM ET
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