Stock futures stabilize slightly higher to start second quarter

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Stock index futures on Thursday traded flat to slightly higher, with tech stocks on track to start the second quarter with an uptick as rising Treasury yields subside. What are the major indices doing? Futures on the Dow Jones Industrial Average YM00, + 0.03% was up 4 points to 32.902. S&P 500 ES00 futures, + 0.30%, were up 10.85 points, or 0.3%, to 3,978.25. Nasdaq-100 NQ00 futures, + 0.96%, were up 114 points, or 0.9%, to 13,203.75. On Wednesday, stocks mostly ended higher, with tech stocks leading the way. The Dow DJIA, -0.26%, lost 85.41 points, or 0.3%, while the S&P 500 SPX, + 0.36% advanced 0.4%, closing just below its record close on Friday. The high-tech Nasdaq Composite COMP was up 1.54% or 1.5%. The major indices posted quarterly gains: the Dow Jones was up 7.8%, the S&P 500 was up 5.8% and the Nasdaq was up 2.8%. The Russell 2000 Small Cap RUT, + 1.13% jumped over 12%.

Read: The Dow just beat the Nasdaq by the widest margin in a month since 2002. This is how stocks tend to behave afterwards. What drives the market? President Joe Biden delivered a speech late Wednesday afternoon detailing his $ 2.3 trillion infrastructure plan. The package is offset by tax increases, including an increase in the corporate tax rate from 21% to 28%, an increase in the global minimum tax for American multinational companies, the establishment of what is called a minimum tax of 15%. % on countable income elimination of tax preferences for fossil fuels and increased law enforcement on corporations. Analysts said technology-driven gains in Wednesday’s session showed that much of the infrastructure package had largely been brought into the market. Stocks more sensitive to the cycle outperformed tech and growth stocks in the first quarter as investors reacted to aggressive fiscal spending efforts that have fueled expectations for a short-term growth boom and the potential for strong growth. increased inflationary pressures. Although the infrastructure plan “is good news for the economy and appears to be a supportive development for equities, it would be interesting to wait and see if this will revive fears of an overheated economy,” said Charalambos Pissouros, senior market analyst at JFD. . Group, on a note. “If so, this could raise US Treasury yields and perhaps weigh on equities again,” he said, but added that a sell-off seemed unlikely as the Federal Reserve says it is not looking for backtracking on their accommodative monetary policies. Treasury yields, which rose sharply in the first quarter, have been quiet this week. The yield on the 10-year Treasury note TMUBMUSD10Y, 1,721% fell 1.2 basis points to 1.72%. Investors will closely follow developments on the fiscal front, analysts said. “The biggest impact on the markets will be whether or not the corporate tax rate rises to 28%, or somewhere between that level and the current level of 21%, and whether or not a global minimum tax can be set for companies. corporations, “Chris said. Zaccarelli, chief investment officer for the Independent Advisor Alliance, in emailed comments. “The stock market is likely to be able to withstand an increase in the corporate tax rate to 25%, but it is unclear how much room there is above that if stocks are going to continue to rise between now and the end of the year,” he said. Investors test employment data again ahead of Friday’s long-awaited March employment report. Weekly figures for first-time jobless claims are due at 8:30 am ET. Initial claims are expected to drop to 675,000 in the week ending March 27 from 684,000 the week before. Markit’s Manufacturing Purchasing Managers Index for March will be released at 9:45 am, followed by the most followed manufacturing index from the Institute for Supply Management. The PMI reading is expected to rise to 59.2 from 59.0 in February, while the ISM indicator is forecast to rise to 61.7% from 60.8%. For both meters, a reading above 50 indicates growth in activity. Construction spending data for February will be released at 10 a.m. M. What companies do you focus on? Micron Technology Inc.MU shares, + 1.93%, rose 3.7% in premarket trading after Boise, Idaho-based chipmaker’s earnings and outlook beat Wall’s estimates Street. Separately, Micron and Western Digital Corp. are exploring a potential deal for Kioxia Holdings Corp. that could value the Japanese semiconductor company at around $ 30 billion, The Wall Street Journal reported. Western Digital shares rose more than 2%. Dave & Buster’s Entertainment Inc. PLAY, + 0.50% on Wednesday night said its fourth quarter was “severely affected” by the pandemic, but turned to a lower-than-expected quarterly loss and reported sales that beat expectations. The shares went down. Johnson & Johnson Inc. JNJ, -0.40% on Wednesday acknowledged that a batch of its COVID-19 vaccine produced by one of its manufacturing partners “did not meet quality standards,” and said it would provide more experts to monitor the production. Johnson & Johnson shares fell more than 1%. Frontier Group Holdings Inc., the parent of low-cost carrier Frontier Airlines, said its initial public offering was priced at $ 19 a share, the lower end of a $ 19 to $ 21 price range. Residential real estate developer Compass priced its initial public offering at $ 18, the lower limit of an already narrowed range. Compass had reduced its price range to a range of $ 18 to $ 19 from $ 23 to $ 26, and reduced the number of shares on offer to 25 million from 36 million.