- Futures up: Dow 0.18%, S&P 0.10%, Nasdaq 0.15%
June 23 (Reuters) – Futures tracking the Nasdaq 100 index hit a record high on Wednesday with investors razor focused on business activity data after Federal Reserve officials sought to calm fears of a sharp tapering of monetary stimulus.
IHS Markit’s flash reading on manufacturing and services PMI data, due at 0945 am ET (1345 GMT), is expected to show a slight easing in business activity this month, compared with May.
In a hearing before a U.S. House of Representatives panel, Fed Chair Jerome Powell reiterated the central bank will not raise interest rates too quickly on inflation fears alone and will encourage a “broad and inclusive” recovery of the job market. read more
Powell’s comments follow the Fed’s projection of an increase in interest rates as soon as 2023, sooner than anticipated which sparked a sharp profit booking in the so called “reflation” stocks and triggered a move into tech-heavy growth names.
However, market participants have swung between value and growth stocks this week, with the Nasdaq (.IXIC) notching a record close on Tuesday, lifted by Amazon.com (AMZN.O), Microsoft Corp (MSFT.O) and other top-shelf tech companies.
At 6:31 a.m. ET, Dow e-minis were up 61 points, or 0.18%, S&P 500 e-minis were up 4.25 points, or 0.1%, and Nasdaq 100 e-minis were up 21.25 points, or 0.15%.
Rate-sensitive JPMorgan Chase & Co (JPM.N), Morgan Stanley (MS.N) and Bank of America (BAC.N) added between 0.4% and 0.7% in premarket trading as yield on the benchmark U.S. 10-year Treasury note rose to 1.5%.
Among so-called meme stocks, software firm Alfi Inc (ALF.O) dropped 10.1% after more than doubling in value in the prior session, while Torchlight Energy Resources Inc (TRCH.O) slumped 8.6% for the second day after announcing an upsized stock offering. read more
Reporting by Devik Jain and Medha Singh in Bengaluru; Editing by Maju Samuel
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