S&P 500, Nasdaq set for higher open on tech boost, Tesla gains

(Reuters) – The S&P 500 and the Nasdaq were headed for a higher opening on Monday as technology stocks looked set to rebound from a recent pullback that was sparked by a surge in bond yields.

FILE PHOTO: People are seen on Wall St. outside the New York Stock Exchange (NYSE) in New York City, U.S., March 19, 2021. REUTERS/Brendan McDermid

Heavyweight Tesla Inc rose about 3% to $676 in pre-market trading as Cathie Wood’s Ark Invest said it expects electric-car maker’s share price to hit $3,000 by 2025. The $26.6 billion ARK Innovation ETF counts Tesla as its largest holding.

A sharp run-up in Treasury yields since mid-February has dictated the course of equities trading, weighing on high-flying tech stocks.

“Tech will get a bid if yields moderate and that’ll probably be the theme for the next couple of months,” said Thomas Hayes, chairman at Great Hill Capital in New York.

Futures tied to the tech-heavy Nasdaq 100 climbed about 0.9% to start the week as the benchmark 10-year Treasury yield dipped to 1.688% from a near fourteen-month high. The index is still down more than 6% from its Feb. 12 record close.

The S&P 500 and the Dow, however, clinched all-time highs as early as last week on bets that stimulus and vaccine rollouts would lead to a strong rebound in the U.S. economy.

Kansas City Southern jumped about 17% after Canadian Pacific Railway Ltd agreed to acquire the railroad operator in a $25 billion cash-and-stock deal to create the first railway spanning the United States, Mexico and Canada.

At 08:26 a.m. ET, Dow E-minis were down 19 points, or 0.06%, S&P 500 E-minis were up 7.25 points, or 0.19% and Nasdaq 100 E-minis were up 88.25 points, or 0.69%.

Intel Corp, Microsoft Corp and Apple Inc led gains among Dow components in trading before the bell.

Big U.S. lenders including Goldman Sachs, Citigroup and Bank of America, which have enjoyed a rally on brightening economic prospects, slipped about 1% each.

The iShares MSCI Turkey ETF sank about 18% as President Tayyip Erdogan’s decision to oust a hawkish central bank governor sparked fears of a reversal of recent rate hikes.

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