Thursday, October 28, 2021

Wall Street set for weak open as technology stocks widen losses

US stock indexes were set to open lower on Friday, as steady yields for government bonds pointed to more movement from heavyweight technology stocks after an unexpected rebound in retail sales this week.

Some of the biggest tech names on Wall Street, Apple Inc. and Alphabet Inc. FAANG stocks, including FAANG, fell slightly in premarket trading, while yields on the benchmark 10-year notes rose slightly.

Lewis Dudley, global equity portfolio manager in international trading at Federated Hermes, said: “(It) was a volatile week and price outperformed in the form of ‘buy dip’ sentiments, but a rebound in the recent market weakness was not supported by the stock market.” Not enough.” .

The focus is also on a Federal Reserve meeting next week, with investors debating whether a slew of strong economic data this week prompt the bank to shorten its deadline to ease monetary stimulus. Can do.

The retail sales readings came on the heels of data showing steady factory activity and a cooling in inflation, which suggested the US economic recovery was resilient despite a recent rise in cases of the delta COVID-19 variant. Losses in major technology stocks dragged the S&P 500 down on Thursday, with bond yields booming after investors saw a pivot in sectors likely to benefit from the economic recovery this year.

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The US S&P 500 E-minis were down 9.5 points, or 0.21 percent, at 08:00 a.m. The Dow E-Minis was down 57 points, or 0.16 percent, while the Nasdaq 100 E-Minis was down 27 points, or 0.17 percent.

Simultaneous expiration of stock options, stock index futures and index options contracts, known as triple witching, is also expected to create volatility during the trading session.

While this phenomenon is not new, the recent increase in options trading volume and increased awareness of this dynamic has resulted in high volatility during the expiration of the year.

All three major indices were on the top for small weekly gains. But they were also trading lower for the month due to seasonally weaker trends in September.

Monthly losses were the lowest on the Nasdaq as investors initially moved to areas more resilient to economic disruptions from the pandemic. However, this trade may ease in the coming weeks.

Among other movers, Invesco Ltd rose 5.2 percent before the bell on reports that the investment management firm was in talks to merge with the asset-management business of peer State Street Corp.

State Street shares rose 0.5 percent.

by Amber Warrick

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This News Originally From – The Epoch Times

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