US STOCKS-Nasdaq set to bounce as tech stocks stabilize after rout

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* Tiffany drops as LVMH warns it is set to walk away from
takeover
* Tesla climbs after losing a third of its value in 10 days
* Tech stocks lead gains among Dow 30 components
* Futures up: Dow 0.69%, S&P 0.89%, Nasdaq 1.38%

(Adds comment, details; Updates prices)
By Medha Singh and Devik Jain
Sept 9 (Reuters) - Wall Street's main indexes were on track
to open higher on Wednesday, as technology-focused companies
climbed following three sessions of intense selling that sent
the Nasdaq Composite index lower by 10%.
Tesla Inc's TSLA.O shares climbed 6.3% in premarket
trading after shedding about a fifth of their value in the
previous session, following its surprise exclusion from the S&P
500. Apple Inc AAPL.O , Salesforce.com Inc CRM.N and Microsoft
Corp MSFT.O , which have borne the brunt of the tech rout, led
gains among the Dow Jones Industrials' 30 components.
The tech-heavy Nasdaq .IXIC tumbled 4.1% on Tuesday,
bringing total losses since Sept. 2 to 10%, with declines also
led by stocks such as Amazon.com Inc AMZN.O , Facebook Inc
FB.O and Netflix Inc NFLX.O after a rally dominated by the
so-called "stay-at-home" winners.
The correction has partly been driven by worries that
sellers of call options would unwind massive amounts of stocks
that they bought during the run up in U.S. stocks as hedges.
Media reports said SoftBank Group Inc 9984.T has made big
bets on equity derivatives tied to tech firms, while retail
investors paid $40 billion of premium on call options in the
past month, data from derivatives clearing organization OCC
showed.
In signs of growing unease about the positioning in tech
stocks, a measure of demand for protective put options in
relation to call options, used to bet on upside, has risen
sharply. Market gyrations are expected to increase in the run-up to
Nov. 3 U.S. presidential elections, with September and October
also historically the most volatile two-month stretch of the
year.
Still, analysts said they did not expect a prolonged
sell-off in U.S. stocks against the backdrop of an easy monetary
policy by the Federal Reserve.
"We will be seeing the correction in the tech stocks
continue for a little bit longer, but I don't think that we are
headed for a new bear market," said Sam Stovall, chief
investment strategist at CFRA in New York.
Later this week, the U.S. Senate also aims to vote on a
drastically scaled-back Republican coronavirus aid bill, despite
opposition from Democrats who are needed for any measure to be
enacted into law. At 8:37 a.m. ET, Dow e-minis 1YMcv1 were up 191 points, or
0.69%, S&P 500 e-minis EScv1 were up 29.75 points, or 0.89%,
and Nasdaq 100 e-minis NQcv1 were up 152.75 points, or 1.38%.
Wall Street's fear gauge .VIX slipped further away from
near three-month highs, as stock markets also shrugged off news
about AstraZeneca AZN.L pausing global trials of its
experimental COVID-19 vaccine after an unexplained illness in a
participant. Lululemon Athletica Inc LULU.O dropped 4.4% after the
yogawear maker forecast a drop in current-quarter adjusted
profit due to higher marketing expenses. Tiffany & Co TIF.N tumbled 9% after French luxury goods
giant LVMH LVMH.PA warned it was set to walk away from its
planned $16 billion takeover of the U.S. jeweler due to
complications arising over the deal. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
The taller they grow ... https://tmsnrt.rs/2Fa2TwQ
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