Stock futures slip in early morning trading after tech-led rally

Traders on the floor of the NYSE, April 4, 2022.
Source: NYSE

Stock futures were flat in overnight trading Monday after investors bought the dip in technology shares following recent weakness.

Futures on the Dow Jones Industrial Average dipped 14 points. S&P 500 futures were little changed, and Nasdaq 100 futures edged 0.1% lower.

The overnight action followed a tech-led rally that saw the Nasdaq Composite rise 1.9%. Shares of Twitter surged 27% for its best day ever after Elon Musk disclosed a 9.2% passive stake in the social media company.

The blue-chip Dow rose about 100 points to begin the trading week, while the S&P 500 advanced 0.8%, both posting their second straight day of gains.

“In the near-term, we believe indiscriminate selling has created attractive entry points, particularly into some high-growth-potential stocks,” Tony DeSpirito, CIO of U.S. fundamental equities at BlackRock, said in a note.

The new quarter has kicked off after the major averages finished their worst quarter in two years. Investors are awaiting the Federal Reserve meeting minutes Wednesday for further clues on the central bank’s rate-hike path. Meanwhile, the first-quarter corporate earnings season is set to begin next week.

“Markets have been resilient given the war in Ukraine, continued price pressures, and uncertain global economic outlook, with investors’ ‘buy the dip’ mentality driving equity returns,” said Mark Hackett, Nationwide’s chief of investment research.

Investors are also keeping an eye on oil prices amid the supply disruptions stemming from Russia’s invasion of Ukraine. WTI crude jumped more than 4% and traded back above $100 a barrel Monday.

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