Technology growth

US STOCKS-Wall Street set to open higher as tech and growth stocks rebound

Band Amruta Khandekar and Devik Jain

May 17 (Reuters)Wall Street’s major indexes were expected to open higher on Tuesday as strong forecasts from Home Depot and United Airlines added to an upbeat global mood driven by hopes of an easing crackdown on tech companies and COVID-19. in China.

Big tech and growth companies led rebound in premarket commerce, with Microsoft Corp MSFT.OApple Inc. AAPL.ONvidia Corporation NVDA.O and Tesla Inc. TSLA.O between 1.5% and 2.3%.

Home Depot Inc. HD.N rose 3.9% after raising its full-year sales forecast on firm demand for home improvement tools and building materials.

United Airlines Holdings Inc. UAL.O rose 4% after the carrier raised its revenue forecast for the current quarter, boosting shares of Delta Air DAL.NAmerican Airlines AAL.O and Spirit Airlines SAVE.N.

“If you’ve exhausted the sellers, there’s no one left to sell…the market has really taken a beating,” said Mimi Duff, senior client advisor at investment advisory firm GenTrust.

“So at the very sight of any good news, you can bounce back, but what we’re really looking for is consolidation.”

Meanwhile, U.S. retail sales rose sharply in April as consumers bought motor vehicles amid improving supply and patronized restaurants, showing no signs of slowing demand despite high inflation.

But rising costs weighed on the Dow Walmart Inc component WMT.Nwhich fell 6.3% after the retail giant slashed its full-year profit forecast, signaling a bigger hit to margins.

Costco Competing Retailer Actions COST.OTarget TGT.Ndollar tree LTTR.O between 0.5 and 1.8%.

In Europe and Asia, stocks surged as Shanghai hit the long-awaited milestone of three consecutive days with no new COVID-19 cases outside quarantine zones, raising hopes restrictions could be eased. MKTS/GLOB

Chinese companies listed on U.S. indexes also rose on signs that China is seeking to ease a regulatory crackdown on the tech sector after Vice Premier Liu He told executives that government-market relations had to be “properly managed”.

A positive first-quarter earnings season was overshadowed by concerns over the war in Ukraine, soaring inflation, China’s COVID-19 lockdown and aggressive central bank policy tightening.

The S&P 500 .SPX fell 3% and the Nasdaq .IXIC 5.5% so far in May, due to losses in growth stocks.

A slew of Federal Reserve policymakers, including Chairman Jerome Powell, are expected to speak later in the day and their comments would be analyzed for clues on the trajectory of future interest rate hikes.

Traders now see an almost 80% chance of a 50 basis point rate hike in June. FEDWATCH

At 8:46 a.m. ET, Dow e-minis 1YMcv1 rose 419 points, or 1.3%, the S&P 500 e-minis ESCv1 were up 62.25 points, or 1.55%, and Nasdaq 100 e-minis NQcv1 were up 221.75 points, or 1.81%.

Among other actions, Advanced Micro Devices AMD.O gained 3.7% after Piper Sandler upgraded the semiconductor designer’s stock to “overweight”.

Citigroup NC jumped 5.2% after Warren Buffett’s Berkshire Hathaway BRKa.N revealed an investment of nearly $3 billion in the US lender.

Take-Two interactive software TWO.O gained 5.4% after publisher “Grand Theft Auto” posted an upbeat fourth-quarter profit.

(Reporting by Amruta Khandekar and Devik Jain in Bengaluru; Editing by Arun Koyyur)

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