News: Nasdaq futures deepen slide ahead of Powell speech.
(Reuters) – Futures, which track the Nasdaq index, pointed to a decline of more than 1% when it opened on Tuesday, as investors sold soaring technology stocks on valuation concerns ahead of Federal Reserve chairman Jerome Powell in Congress testified.
Powell is expected to reassure investors that the central bank will tolerate a faster pace of price increases despite concerns over a possible pickup in inflation and spike in bond yields.
The Senate Banking Committee hearing is due to begin at 10 a.m. EST (1500 GMT) and will be Powell’s first since the Democrats won the White House and control of both houses of Congress.
The Nasdaq and benchmark S&P 500 saw their largest one-day percentage decline on Monday in February as inflation fears and overheating in asset markets hit the so-called “stay-at-home” winner stocks that rallied Wall Street had spearheaded the pandemic lows.
Early trading pointed to another round of losses in technology-related stocks with shares of Netflix Inc, Facebook Inc, Alphabet Inc, Microsoft Corp, Amazon.com Inc, and Apple Inc fall between 1.1% and 2%.
Value stocks, which should benefit from an economic recovery, outperformed growth stocks in February.
At 7:16 a.m. ET, the Dow E-Minis rose 13 points, or 0.04%, the S&P 500 E-Minis 14 points, or 0.36%, and the Nasdaq 100 E-Minis rose 177.25 points or 1.34%.
Occidental Petroleum Corp was down 1.9% after the oil producer posted a better-than-expected loss in the fourth quarter.
Home Depot Inc fell 2.5% after the hardware store warned that it could not predict how consumer spending would play this year.
Cryptocurrency miners Riot Blockchain Inc and Marathon Patent Group Inc plunged 15% and 17% respectively, while Bitcoin Bank Silvergate Capital Corp was down 9.5% as Bitcoin fell nearly 17% to $ 45,000. Tesla Inc, which invested $ 1.5 billion in the cryptocurrency, also fell 4.5 percent and should be in the red for the year.
The US consumer confidence data is due at 10 a.m. ET, which is expected to hit 90 in February.
Reporting by Devik Jain in Bengaluru; Adaptation by Anil D’Silva
Original Source © Reuters