US STOCKS-Nasdaq set to jump as tech stocks snap back

Published 11/11/2020, 14:53
Updated 11/11/2020, 14:54
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* Lyft climbs on plans to enter food-delivery market
* Futures up: Dow 0.7%, S&P 0.9%, Nasdaq 1.2%

(Adds comment, details; updates prices)
By Medha Singh and Shivani Kumaresan
Nov 11 (Reuters) - Wall Street's main indexes were set to
open higher on Wednesday as signs of a working COVID-19 vaccine
raised hopes of a faster-than-expected economic rebound, with
technology stocks bouncing back from steep losses this week.
Nasdaq 100 futures .NQcv1 were up more than 1%, while
technology mega-caps including Netflix Inc NFLX.O , Amazon.com
Inc AMZN.O and Facebook Inc FB.O , the so-called stay-at-home
winners, also gained about 1% in premarket trading.
Encouraging data from a late-stage vaccine earlier this week
prompted a rotation away from technology names, and lifted
demand for stocks sensitive to economic growth, as well as those
that have lagged this year such as energy, financials and
industrials.
The top U.S. infectious disease specialist urged caution
until a vaccine can be approved and distributed, as California
and several states across the U.S. Midwest tightened
restrictions. "It will be a long time before we can get a sizable part of
the population inoculated with the vaccine... but it does speak
to a slightly brighter future," said Randy Frederick, vice
president of trading and derivatives for Charles Schwab in
Austin, Texas.
Markets, which also got a boost after Democrat Joe Biden was
projected the winner of the U.S. election on Saturday, have also
shrugged off legal challenges from President Donald Trump.
Meanwhile, the Democratic Party retained control of the U.S.
House of Representatives, but investors are more focused on
Senate races in Georgia in January that could determine if major
Democratic priorities like a large coronavirus aid bill would be
passed by Congress. At 08:26 a.m. ET, Dow E-minis 1YMcv1 were up 0.71% and S&P
500 E-minis EScv1 were up 0.86%.
Lyft Inc LYFT.O jumped 5.7% after the ride-hailing app
said it was working on a new service to take a slice of the
burgeoning food-delivery market, as it works to make up for a
drop in quarterly revenue. Chip stocks, including Advanced Micro Devices Inc AMD.O ,
Nvidia Corp NVDA.O and Qualcomm Inc QCOM.O , rose between 1%
and 2% after suffering sharp losses a day earlier.

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