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US stock futures rose on Sunday night following a sell-off in tech stocks, leading to the market’s first back-to-back weekly decline in months.
The Dow Jones Industrial Average Futures traded 130 points or 0.5% higher. The S&P 500 also climbed 0.5% with Nasdaq 100 futures.
The S&P 500 lost 2.5% last week. This was the worst one-week decline in the broader market index since 26 June. This decline also marked the first time since May that the S&P 500 closed lower in two straight weeks.
Those losses were largely driven by a decline in Tech, the best-performing market sector to date. The S&P 500 tech sector lost more than 4% to its biggest weekly loss since March. Apple, the largest US company with a market cap, lost more than 7% last week.
In a note, the institute’s executive director, Frank Capleri, said “the excessive technology shock has been erased since August, but in its wake, clear and ominous topping patterns such as … have evolved”.
To make sure Jefferies’s Sean Derby feels that this decline at Tech may be short-lived.
Darby, a global equity strategist, said, “There is nothing untoward about the fundamentals and earnings expectations. Further weakness will be a surprise given the weakness of the dollar, while a commentary and / or long-term rate hikes will curb performance. Will take. In the firm.
Investors are arriving in the new week amid dwindling expectations from lawmakers seeking a deal on new fiscal stimulus.
C-Major Leader Mitch McConnell, R-KY, said Friday that a deal between Republicans and Democrats is unlikely to be reached “it looks good right now.” Earlier this month, House Speaker Nancy Pelosi, D-California, said there were “serious differences” between Democrats and the White House over coronovirus aid.
According to a CNBC analysis of data from Johns Hopkins University, the number of American coronavirus cases in 11 states is increasing by 5% or more. Director of the National Institute of Allergy and Infectious Diseases, Drs. Anthony Fauci said last week that recent coronovirus data was “disturbing”.
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