Stock index futures rose on Wednesday, with growth stocks outperforming after Tesla's earnings.
Nasdaq 100 Futures (NDX:IND) +0.6%S&P 500 futures (SPX) +0.2%and Dow futures (INDU) were almost tied.
The 10-year Treasury yield (US10Y) rose 4 basis points to 4.64%. He 2-year performance (US2Y) rose 1 basis point to 4.94%.
See how Treasury yields have performed across the curve on the Seeking Alpha bonds page.
On Tuesday, Wall Street continued its recovery and finished with strong gains, boosted by technology stocks ahead of key quarterly reports from members of the Magnificent 7 over the next few days.
“Several factors helped drive this, but perhaps the most important was actually the disappointing preliminary PMIs in the US, which raised hopes that rate cuts would still happen this year,” said Deutsche Bank's Jim Reid.
The composite PMI (preliminary estimate) came in at 50.9, down from 52.1 in the previous month, indicating that U.S. business activity expanded at a slower pace during the month, following signs of weaker demand.
“The S&P PMI survey suggests investors have too hastily discounted chances of the economy suddenly weakening in the second quarter,” Pantheon Macroeconomics said.
Tesla (TSLA), which reported earnings after the close on Tuesday, is up 12% in premarket trading after the company pledged to launch a more affordable model that can be produced on the same manufacturing lines that are currently used for the current company. model alignment.
Tesla's gains come even though the electric vehicle maker posted a sharp drop in first-quarter revenue, deliveries, margins and earnings per share from a year ago.
“Earnings season will continue apace today, as we'll hear from Meta after the US close later. Ahead of Tesla's results, weak US PMIs helped set the tone, and Treasury yields saw a sharp intraday decline following its release,” Reid said.
Meta (META) is expected to release its results today after the bell.
On the economic front, durable goods orders for March are due before the bell rings. Economists expect a 2.5% increase, with a 0.3% increase in core durable goods orders.
“We see room for a significant underestimation of durable goods orders in March relative to consensus,” Pantheon Macro said.
The orders are “a volatile series, with a very wide forecast range for the headline, so presenting the outcome as above or below consensus is not particularly helpful,” said Paul Donovan of UBS.
The Business Uncertainty Survey is also scheduled for today during market hours.
