S&P 500 slips on report Fed’s Waller leading race to replace Powell; tech shines
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* Futures up: Dow 0.89%, S&P 0.89%, Nasdaq 1.07%
* Nvidia jumps after results, lifts chip stocks
* Bank stocks rise as U.S. Treasury yield ease off lows
* FAANGs rise more than 1%
(Adds comment, details; Updates prices)
By Medha Singh
Aug 16 (Reuters) - Hopes of more official stimulus for the
economy and the easing of a bond market rally put Wall Street on
track to open sharply higher on Friday, as a bruising week for
markets drew to a close.
New York's three main indexes are down at least 2.4% since
last Friday, racking up their third consecutive week of losses,
as investors worried about the risk of recession and U.S.-China
trade tensions.
China's state planner said overnight it would roll out a
plan to boost disposable income this year and in 2020 to spur
consumption as the economy slows. Investors are also expecting
further interest rate cuts from the Federal Reserve and moves by
the European Central Bank next month to fight softening growth.
"We haven't seen any major headlines on trade war today and
that is giving the market some relief. The move back up on
yields is also releasing the pressure on equity markets," said
Peter Cardillo, chief market economist at Spartan Capital
Securities in New York.
"It is sort of a relief rally and perhaps some bargain
hunting since a lot of stocks have been really decimated during
this recent decline."
Among stocks, Nvidia Corp NVDA.O jumped 5.5% in premarket
trading after posting better-than-expected quarterly profit and
revenue. Other semiconductor stocks, including Advanced Micro Devices
Inc AMD.O , Micron Technology Inc MU.O , Intel Corp INTC.O ,
were up between 1.3% and 2.3%.
Interest-rate sensitive lenders, including Bank of America (NYSE:BAC)
Corp BAC.N , Citigroup Inc (NYSE:C) C.N , JPMorgan Chase (NYSE:JPM) & Co JPM.N ,
and Morgan Stanley (NYSE:MS) MS.N , rose more than 1% as U.S. Treasury
bond yields eased off their lows. US/
At 8:33 a.m. ET, Dow e-minis 1YMcv1 were up 227 points, or
0.89%. S&P 500 e-minis EScv1 were up 25.25 points, or 0.89%
and Nasdaq 100 e-minis NQcv1 were up 80 points, or 1.07%.
The so-called FAANG group - which includes Facebook Inc
FB.O , Amazon.com Inc AMZN.O , Apple AAPL.O , Netflix Inc
NFLX.O and Google-parent Alphabet Inc GOOGL.O - gained at
least 1%.
Deere & Co DE.N shares fell 0.9% as the farm equipment
maker cut its full-year profit and sales growth forecasts.