A retailer works in a booth on the floor of the New York Stock Exchange (NYSE) in New York City, USA, 13 July 2021.
Brendan McDermid | Reuters
Stock futures rose slightly in overnight trading after a surge in technology stocks drove the Nasdaq Composite to its third consecutive positive day on Thursday.
Futures on the Dow Jones Industrial Average gained 52 points, or 0.15%. S&P 500 futures gained 0.24% and Nasdaq 100 futures rose 0.33%.
Technological strength continued after hours as stocks of social media companies Twitter and Snap rose after better-than-expected earnings reports for the second quarter.
Major US indices closed Thursday’s regular trading session higher and posted a three-day winning streak. The Dow rose 25.35 points, or 0.07%. The S&P 500 was up 0.2%. The technology-heavy Nasdaq Composite led the markets with a gain of 0.36%.
All three US stock averages are well on their way to end the week in the green for a fourth positive of five weeks after recovering from last week’s losses and sharp sell-off on Monday.
Microsoft had the biggest impact on the S&P 500 and the Nasdaq on Thursday; the stock closed 1.7% higher. Salesforce had the biggest positive impact on the Dow, as software stock rose 2.6% on Thursday.
The strength of tech stocks comes from the continued prevalence of the highly contagious Delta-Covid variant raising concerns about economic growth.
“We have seen in the depths of the pandemic that tech stocks and their earnings have done best, so I think many investors are returning to the well as we have a Covid resurgence,” said Yung-Yu Ma, chief Investment Strategist at BMO Wealth Management said. “When long-term rates go down as much as they did, these stocks will get more attractive too.”
Big tech companies like Microsoft, Google parent Alphabet, Apple, Facebook and Amazon will be releasing their second quarter results next week.