Wall Street technology, set to open higher as growth stock rebounds

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The main indicators on Wall Street were set to open higher on Tuesday, as strong predictions from Home Depot and United Airlines added an upbeat global mood, driven by hopes of easing the crackdown on technology companies and COVID-19 in China.

Microsoft Corp., Apple Inc., Nvidia Corp. and Tesla Inc. led the rebound in premarket trading, with major technology and growth companies advancing between 1.5% and 2.3%.

Home Depot Inc. added 3.9% after boosting its full-year sales forecast on strong demand for home improvement equipment and building materials.

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As shares of Delta Air, American Airlines and Spirit Airlines rose, United Airlines Holdings Inc. rose 4% after Carrier lifted its current quarterly revenue forecast.

Mimi Duff, senior client adviser at investment advisory firm Zentrust, said: “If your sellers are tired, there is no one left to sell. The market is really in turmoil.

“So you can get a bounce just by looking at any good news but what we’re really looking for is some consolidation.”

Meanwhile, U.S. retail sales rose sharply in April as supply improved and consumers bought motor vehicles amid frequent restaurants, showing no signs of slowing demand despite high inflation.

But rising costs have weighed on Dow component Walmart Inc., which fell 6.3% after the retail giant cut its annual profit forecast, indicating a major blow to margins.

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Shares of rival retailer Costco, Target, Dollar Tree fell 0.5 to 1.6%.

In Europe and Asia, as Shanghai achieved its long-awaited milestone of three days in a row, stocks jumped as no new COVID-19 cases were found outside the quarantine zone, raising hopes that restrictions could be relaxed.

Chinese companies listed on the US index also rose on signs that China was seeking to ease a regulatory crackdown on technology, after Vice-Premier Liu told executives that relations between the government and the market needed to be “properly managed”.

The Ukraine war, rising inflation, the COVID-19 lockdown in China, and the tightening of aggressive policies of the central banks have led to a positive first-quarter earnings season.

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The S&P 500 is down 3% so far in May and the Nasdaq is down 5.5%, due to rising stock losses.

A number of Federal Reserve policymakers, including Chair Jerome Powell, are scheduled to speak later in the day, and their comments will be analyzed to signal future interest rate hikes.

Traders are now seeing an 80% chance of a 50-basis point rate increase in June.

At 8:46 am ET, the Dow e-minis was up 419 points or 1.3%, the S&P 500 e-minis was up 62.25 points or 1.55%, and the Nasdaq 100 e-minis was up 221.75 points or 1.81%.

Among other stocks, Piper Sandler Semiconductor Designer’s stock advanced 3.7% after upgrading to “overweight”.

Citigroup jumped 5.2% after Warren Buffett’s Berkshire Hathaway announced a প্রায় 3 billion investment in a US lender. Tech-to-Interactive software gained 5.4% while Grand Theft Auto ”publisher posted fourth-quarter profit. (Reporting by Amrita Khandekar and Devik Jain in Bangalore; edited by Arun Kayur)



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