S&P 500, Nasdaq futures rebound after selloff

The U.S. flag is seen outside of the New York Stock Exchange (NYSE) in New York City, U.S., September 21, 2020. REUTERS/Andrew Kelly

(Reuters) – Futures tracking the S&P 500 and Nasdaq indexes bounced on Tuesday, with beaten-down shares of technology-related companies leading early gains, while Dow futures were subdued on uncertainty over more U.S. fiscal stimulus.

All three of Wall Street’s main indexes started the week on the back foot as worries about new lockdowns in Europe and a stalemate in Congress over the size and shape of another coronavirus-response bill dented hopes of a swift economic recovery.

The S&P 500 closed down just under 9% on Monday from hitting a record high on Sept. 2, floating just above correction territory.

The growth-linked technology sector was the only one to post gains in the previous session, while value-oriented sectors such as industrials, energy and financials tumbled about 3%.

Early premarket gainers on Tuesday included Microsoft Corp, Apple Inc, Amazon.com Inc, Alphabet Inc and Facebook Inc, all of which have dominated Wall Street’s rally since a coronavirus-driven crash in March.

At 6:37 a.m. ET, Dow e-minis were down 5 points, or 0.02%. S&P 500 e-minis were up 7 points, or 0.21% and Nasdaq 100 e-minis were up 81.5 points, or 0.74%.

Tesla Inc fell 3.4% after Chief Executive Officer Elon Musk warned about the difficulties of speeding up production as an expert cautioned the carmaker’s increased reliance on large-scale aluminium parts could bring new manufacturing challenges.

Oracle Corp shed 1.2% on report that Beijing was unlikely to approve a proposed deal by the software maker and Walmart for ByteDance’s TikTok.

Carnival Corp lost 1% after the cruise operator announced sale of its two Princess Cruises ships – Sun Princess and Sea Princess – to undisclosed buyers.

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