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US STOCKS-Futures rally as Big Tech extends recovery
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US STOCKS-Futures rally as Big Tech extends recovery
Aug 7, 2024 3:48 AM

(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window.)

*

Futures up: S&P 500 1.05%, Nasdaq 1.21%, Dow 0.79%

Aug 7 (Reuters) - U.S. stock index futures jumped on

Wednesday as risk appetite returned after a steep selloff

earlier in the week, with sentiment also getting a boost from

cautious comments on interest-rate hikes by an influential Bank

of Japan policymaker.

Big technology stocks extended their rebound, rising more

than 1% in premarket trading.

Wall Street's main indexes ended Tuesday with healthy gains

after comments from Federal Reserve officials eased worries of a

U.S. recession following weak economic data last week.

The spotlight shifted back to earnings. Super Micro Computer ( SMCI )

fell 12.7% after reporting quarterly adjusted gross

margin below estimates. Rival Dell Technologies ( DELL ) dropped

2.4%.

Airbnb ( ABNB ) slid 16% after the company forecast

third-quarter revenue below estimates and warned of shorter

booking windows, suggesting travelers were waiting until the

last minute to book due to economic uncertainty.

At 5:12 a.m. ET, U.S. S&P 500 E-minis were up 55.5

points, or 1.05%, with 212,861 contracts changing hands, Nasdaq

100 E-minis were up 220.5 points, or 1.21%, Dow E-minis

were up 310 points, or 0.79%

Bank of Japan (BOJ) Deputy Governor Shinichi Uchida said in

a speech to business leaders that the central bank would not

raise interest rates when financial markets are unstable.

The BOJ rate hike on July 31 sparked a global stocks rout as

the yen surged and investors unwound sharp positions of the

currency carry trades that fund high-yielding assets.

"The silver lining is that, while the current volatility

might be painful, a reset after a period of excessive optimism

could lead to a healthier market," said Oliver Blackbourn,

portfolio manager-multi-asset team at Janus Henderson.

"It's important to understand that a soft landing is being

questioned but is not out of the question, meaning economic

resilience and declining interest rates could ultimately help to

lift risk assets again."

Wall Street's fear gauge, the CBOE Volatility Index,

was down at 23.43 points, from a peak of 65.73 on Monday.

The markets now await more commentary on monetary policy

from U.S. central bank officials next week, in the run-up to the

Jackson Hole event where Fed Chair Jerome Powell is scheduled to

speak.

Among other movers, Boeing ( BA ) rose 1.5% on plans to make

design changes to prevent a future mid-air cabin panel blowout

like the one in an Alaska Airlines 737 MAX 9 flight in

January.

Amgen ( AMGN ) fell 4.0% after the drugmaker said

second-quarter profit slipped 1% as higher expenses offset a 20%

increase in revenue.

Rivian dropped 6.3% after forecasting that

production would not rise this year and said deliveries in the

third quarter would be slightly lower.

(Reporting by Shubham Batra in Bengaluru; Editing by Sriraj

Kalluvila)

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