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Megacap growth and tech shares bounce 1.5% to 3%
Tesla rebounds after worst selloff in four months
Rivian jumps on reaffirming FY deliveries view; lifts
Futures up: Dow 1.32%, S&P 1.59%, Nasdaq 1.89%
Oct 4 (Reuters) - Wall Street futures rose more than 1%
on Tuesday as easing U.S. Treasury yields boosted megacap growth
and technology stocks, while investors awaited more economic
data to gauge the Federal Reserve's rate hike path.
Data on job openings and factory orders will be in focus
after the market opens, a day after weaker-than-expected
manufacturing activity showed rising rates taming demand for
Yields on government bonds fell on hopes that the Federal
Reserve tap down its aggressive stance, but Bank of New York
President John Williams said despite nascent signs of cooling
inflation, price pressures remain too high, implying the U.S.
central bank must press forward.
"The biggest story here is that last week you saw the Bank
of England blink and investors around the world are starting to
realize that there are limits to central banks' hawkishness
before things start to break," said Thomas Hayes, chairman and
managing member of New York-based Great Hill Capital.
"The market loves to see that (weakness in yields and
dollar) and it sets up well going into earnings season with
expectations so low at 3.2% earnings growth."
The yields on the 10-year U.S. Treasury
extended their decline, lifting rate-sensitive growth and
technology stocks in trading before the bell.
Megacap stocks such as Apple Inc, Microsoft Corp
, Alphabet Inc and Nvidia Corp rose
around 1.6% to 2.6%.
At 8:32 a.m. ET, Dow e-minis were up 389 points, or
1.32%, S&P 500 e-minis were up 58.5 points, or 1.59%,
and Nasdaq 100 e-minis were up 213 points, or 1.89%.
Banks such as Wells Fargo & Co, JPMorgan Chase & Co
and Bank of America Corp added nearly 2% each.
The rebound in stocks on the first trading day of the final
quarter follows the S&P 500's lowest close in nearly two
years on Friday that capped its worst monthly performance since
Investors will continue to keep a close watch on comments
from Fed speakers including New York President John Williams,
Cleveland President Loretta Mester and Governor Philip
Rivian Automotive Inc jumped 7.6% after the
electric-vehicle maker said it produced 7,363 units in the third
quarter, 67% higher than the preceding quarter, and maintained
its full-year target of 25,000.
Tesla Inc bounced back 2.9% from its steepest
selloff in four months in the previous session that was
triggered by disappointing quarterly vehicle deliveries.
(Reporting by Medha Singh, Ankika Biswas and Bansari Mayur
Kamdar in Bengaluru; Editing by Anil D'Silva and Arun Koyyur)