Business is booming.

Nasdaq futures sink 2% as investors brace for possible Blue Wave By Reuters


© Reuters. FILE PHOTO: The U.S. flag covers the front facade of the NYSE in New York

By Sagarika Jaisinghani

(Reuters) -Futures tracking the technology-heavy sank 2% on Wednesday as investors priced in the prospect of a Democrat-controlled Senate that could lead to tighter regulations on technology mega-caps.

Democratic challenger Raphael Warnock won a hotly contested Senate race in Georgia over Republican incumbent Kelly Loeffler, TV networks and Edison Research projected. The race between Democrat Jon Ossoff and Republican David Perdue was still too close to call.

A so-called “blue wave” would give more scope for President-elect Joe Biden to act on his reform plans including new COVID-19 stimulus, but it could also mean higher corporate taxes and more regulations on the technology behemoths that led Wall Street’s recovery from a coronavirus-driven crash last year.

“We’re seeing a bit of a sell-off in Nasdaq (futures) because that’s where the outright war is going to come in terms of what the Democrats have said about breaking up big tech,” said Keith Temperton, an equity sales trader at Forte Securities.

Shares of Apple Inc (NASDAQ:), Microsoft Corp (NASDAQ:), Amazon.com Inc (NASDAQ:) and Google-parent Alphabet (NASDAQ:) Inc fell between 1.9% and 2.4% in early premarket trading. Tesla (NASDAQ:) Inc was the only major technology stock trading higher.

By 4:26 a.m. ET, were down 18 points, or 0.48%, and were down 242.25 points, or 1.89%.

were nearly flat, with stimulus bets propping up shares of industrial bellwethers Caterpillar Inc (NYSE:) and 3M Co. Futures tracking the small-cap index jumped 1.3%.

“A ‘blue wave’ might not be a bad outcome for markets as decisive fiscal action will help to accelerate economic recovery,” said Vasu Menon, investment strategy executive director at OCBC Bank, Singapore.

Shares of big banks JPMorgan Chase & Co (NYSE:), Citigroup Inc (NYSE:) and Bank of America Corp (NYSE:) rose between 1.3% and 2.4%, tracking Treasury yields. [US/]

Hopes of a vaccine-powered economic recovery in 2021 had powered Wall Street’s main indexes to record highs in late-December, but sentiment has recently been dented by the discovery of a more contagious variant of the coronavirus and the latest restrictions.

Analysts also expect the market to consolidate December’s gains in January as asset managers look to rebalance their portfolios that had been heavily tilted toward equities.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Leave A Reply

Your email address will not be published.