(C) Reuters. FILE PHOTO: The New York Stock Exchange is pictured in the Manhattan borough of New York City, New York, U.S., April 16, 2021. REUTERS/Carlo Allegri
By Devik Jain and Shreyashi Sanyal
(Reuters) – The Nasdaq futures hit a record high on Wednesday as a fall in Treasury yields supported tech-heavy growth stocks, while investors focused on the Federal Reserve’s minutes from the June meeting to gauge the trajectory of policy support going forward.
Yield on the U.S. 10-year notes slipped for the seventh straight session, while mega-cap technology names Facebook Inc (NASDAQ:FB) Apple Inc (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL) Inc and Amazon.com Inc (NASDAQ:AMZN) gained between 0.6% and 0.7% in premarket trading.
Fast-growing technology stocks are sensitive to yields as their value rests heavily on future earnings, which are discounted more deeply when bond returns go up.
On the other hand, rate-sensitive banking stocks like Bank of America (NYSE:BAC), Goldman Sachs (NYSE:GS) and JP Morgan Chase (NYSE:JPM) & Co edged lower, adding to sharp losses in the previous session.
The Fed minutes, due at 2 p.m. ET, is expected to offer clues on how the U.S. central bank may begin to pare its large bond-buying program amid signs of quickening economic recovery.
Wall Street has been concerned over runaway inflation, with investors moving between economy-linked value stocks and growth names in the past few sessions.
The Dow and S&P 500 fell on Tuesday, with financials and other groups closely tied to economic growth leading declines, while the Nasdaq notched a second-straight closing record.
Oil stocks Exxon Mobil (NYSE:XOM), Schlumberger NV (NYSE:SLB), ConocoPhillips (NYSE:COP), Marathon Oil Corp (NYSE:MRO), Occidental Petroleum Corp (NYSE:OXY) and Halliburton (NYSE:HAL) Co rose between 0.7% and 3.4%, tracking crude prices.
China’s market regulator said it has fined a number of internet companies including Didi Global, Tencent and Alibaba (NYSE:BABA) for failing to report earlier merger and acquisition deals for approval.
U.S.-listed shares of Didi fell 4.3%, while Alibaba edged 0.4% higher.
Nasdaq futures scale new peak, all eyes on Fed minutes
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