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Nasdaq Futures Down 175 Pts; Tech Sector Under Pressure

Stock MarketsMay 19, 2021 07:00AM ET
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© Reuters.

By Peter Nurse   

Investing.com - U.S. stocks are seen opening sharply lower Wednesday, continuing the downward move from the previous session, with the tech sector under particular pressure ahead of the minutes of the latest Federal Reserve meeting.

At 7:05 AM ET (1205 GMT), the Dow Futures contract was down 235 points, or 0.7%, S&P 500 Futures traded 36 points, or 0.9%, lower, and Nasdaq 100 Futures dropped 175 points, or 1.3%.

On Tuesday, the major indices all ended in the red after a late selloff, with tech stocks giving up their gains and energy shares dragged lower by the falling oil price. The broad-based S&P 500 fell 0.9%, the blue-chip Dow Jones Industrial Average fell 0.8% and tech-heavy Nasdaq Composite fell 0.6%. 

Growth stocks, and the mega tech companies in particular, have come under pressure lately on fears growing inflationary pressures could prompt the Federal Reserve to rein in its easy policies earlier than expected. 

Sentiment in the tech sector has also been hit by a sharp drop in cryptocurrencies, with Bitcoin falling below $40,000 for the first time in 14 weeks. 

The Nasdaq Composite is almost 5% lower in May, the S&P 500 is just over 1% lower while the DJIA is still marginally higher. 

The minutes of the April meeting of the Fed’s Open Market Committee will be published later Wednesday. While this get together came before the big April jobs miss and last week’s higher-than-expected CPI number, investors will still study the details for clues on the Fed’s monetary intentions.

In corporate news, the retail sector will remain in focus Wednesday after Tuesday’s blowout numbers from Walmart (NYSE:WMT), Home Depot (NYSE:HD) and Macy's (NYSE:M). Target (NYSE:TGT) continued the good news with a 23% jump in first-quarter sales, while Lowe’s (NYSE:LOW) numbers beat expectations on robust home improvement spending. L Brands (NYSE:LB), the owner of Victoria’s Secret, reports after the close.

Oil prices weakened Wednesday as investors digested the prospects of more supply entering the market following reports of progress in the talks between the United States and Iran to revive a deal limiting the Persian Gulf country’s nuclear program, which could lead to a lifting of sanctions on its crude exports.

Additionally, data from the American Petroleum Institute showed that U.S. crude inventories rose by 620,000 barrels last week. If confirmed by U.S. government data later in the session, that would be the first weekly increase in three weeks. 

U.S. crude futures traded 2.1% lower at $64.12 a barrel, while the Brent contract fell 2% to $67.34.

Additionally, gold futures fell 0.5% to $1,858.95/oz, while EUR/USD traded 0.1% lower at 1.2208.

 

Nasdaq Futures Down 175 Pts; Tech Sector Under Pressure
 

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Comments (5)
Gulam Musthafa
Gulam Musthafa May 19, 2021 10:50AM ET
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Ghulam Mustafa
Ivan Bosko
Ivan Bosko May 19, 2021 8:34AM ET
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Since Biden became president, technology stocks have been under constant pressure as well as renewable energy, most renewable energy stocks have fallen more in these four months than during the 2008 economic crisis, does the administration intend to take action or do their days go by, I doubt it? ??
William Smith
William Smith May 19, 2021 8:31AM ET
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Everything looked great before Yellen's "higher taxes will increase corporate profits" speech yesterday morning. Such nonsense just doesn't fly.
Jacob Steinschlag
Jacob Steinschlag May 19, 2021 7:29AM ET
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There is many facts totally wrong in this article. Growth stocks are doing fine and have been gaining the past 4 sessions while the market has dipped. The ones under pressure are Megacap Tech, Overvalued value stocks, and oil stocks. There is a rotation from value INTO undervalued growth right now going on, not the other way around. Get your facts straight please.
Modern Matrix
Modern Matrix May 19, 2021 7:29AM ET
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investing ,com use facts?! Now thats rich.
Kingsley Ohajinwa
Kingsley Ohajinwa May 19, 2021 7:25AM ET
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very good I love it great
 
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