Stock market news live updates: Stock futures open higher after Nasdaq sinks into correction
Stock futures opened higher Monday evening, with technology stocks steadying after another session of deep losses. The Dow added to earlier gains.
Contracts on the Nasdaq ticked up after the index sank into a correction by the end of the regular session, plunging more than 10% from a recent record closing high. Shares of Tesla steadied in after-hours trading after falling another nearly 6% on Monday, bringing its March-to-date loss to almost 17%. Apple shares sank to the lowest level since November.
The Dow, meanwhile, rallied to an all-time intraday high on Monday before paring some gains. Disney led advances in the 30-stock index ahead of the company’s annual shareholder meeting on Tuesday, while Cisco, Walgreens Boots Alliance and Visa also outperformed. The utilities, financials and materials sectors gained in the S&P 500, bucking the downward trend in the broader blue-chip index.
The sharp contrast between the performance of the Dow and Nasdaq has underscored investors’ increasing tilt away from technology stocks in favor of value and cyclical stocks with earnings closely tied to a strong economic recovery. The U.S. House of Representatives is set to take up the $1.9 trillion stimulus package the Senate advanced over the weekend, putting the legislation on track for potential passage this week and teeing up the economy for another massive infusion of stimulus. These prospects have also pushed bond yields higher, with the yield on the 10-year Treasury note topping 1.61%, for a jump of about 50 basis points from levels just a month ago.
These factors have all worked to make the growth and tech stocks less appealing to investors, especially following many of their breakneck run-ups last year. Shares of Zoom Video Communications – a paragon of the “work from home” trade of 2020 – have fallen 8% for the year-to-date, pulling back after a nearly 400% surge last year. Shares of other technology companies and businesses conducive to social distancing have endured similar swoons.
“This is a trend that tends to happen as we get out of a recession: You tend to see stocks move towards cyclicals. So things like value companies or small caps, things like energy, tend to do really well when you’re coming out of a recession. And what happened last year is, those tech companies were really doing so well that their prices were getting extremely high,” Courtney Dominguez, Payne Capital Management senior wealth advisor, told Yahoo Finance on Monday. “I don’t think these companies are going away. I think a lot of these are going to be things that we continue to have in our workplaces going forward. But the question is, are these companies so expensive, is all the optimism already priced in? And that’s different than these companies continuing to being a main forefront of how we work going forward. “
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6:04 p.m. ET Monday: Stock futures open slightly higher
Here were the main moves in markets as of 6:04 p.m. ET:
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S&P 500 futures (ES=F): 3,834.75, up 15.5 points or 0.41%
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Dow futures (YM=F): 31,904.00, up 128 points or 0.4%
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Nasdaq futures (NQ=F): 12,355.25, up 58 points or 0.47%
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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck
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