Stock futures rise, pointing to technology rally

US stock futures rallied on Tuesday when a recent wave of government bond sales was halted and giant tech stocks regained some ground.

S&P 500 futures are up more than 1%, suggesting that the broad market benchmark may rally after the New York opening bell. Dow Jones industrial average futures were up 0.4%. The blue-chips index posted a new intraday record on Monday.

Futures linked to the Nasdaq-100 rose 1.8% on Tuesday, indicating that technology stocks are likely to rebound. The Heavy Tech Index and the broader Nasdaq Composite Index fell into correction territory on Monday, meaning the indicators are down more than 10% from recent highs.

Tech stocks have been under pressure in recent weeks as a selloff in the bond market pushed up Treasury yields. That led investors to question the high valuations the tech sector is trading at after its strong rise in 2020.

The 10-year Treasury yield fell to 1.542% on Tuesday. It had finished the day before at 1,594%, its highest level in more than a year.


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