It’s been a day of mixed fortunes for US futures so far today. Tech shares were battered in Wall Street yesterday and that continued after Amazon faced a backlash on their earnings reporting. Big tech continues to try and justify their increased AI infrastructure spending but investors are slowly but surely moving on to the “show me the money” mood. And Amazon is being punished, with shares down over 8% in pre-market.
Despite that, we are seeing a solid recovery in US futures after some losses early in Asia trading. S&P 500 futures were down by as much as 1% at the lows earlier today but are now seen up 0.5% instead. Tech shares are leading the rebound with Nasdaq futures seen up 0.7% as well currently.
Of note, Microsoft shares are up 1.6% in pre-market while Palantir shares are up over 5% in pre-market. Both were beaten down heavily in trading yesterday and for the better part of this week. Meanwhile, Oracle shares are also up close to 2% after dropping by roughly 7% yesterday.
The latest bounce offers just a bit of relief with the S&P 500 nudging down yesterday to test its 100-day moving average. The last time we got to this juncture was back in November last year and dip buyers prevailed. But if the Nasdaq is any indication, we could see tech shares fall off again in reaffirming the break under its own 100-day moving average (red line) this week:
If so, that will definitely cascade to the S&P 500 and arguably broader risk sentiment in Wall Street.
So far today, the mood music is also helped by a modest rebound in the likes of precious metals and Bitcoin too. Silver fell off hard to near $64 at the lows in early Asia trading but is now trading near 5% higher at around $74.61. Meanwhile, Bitcoin dipped down to come within a whisker of the $60,000 level before finding bids to be up to $66,000 levels now.
Overall, the backdrop is still one filled with much nervousness and jitters. The slight bounce here offers investors to catch a breath for a bit. But make no mistake, risk sentiment is still in a fragile state as we look to close out the week.
This article was written by Justin Low at investinglive.com.