U.S Futures Rebound After Tech Rout, Trade Deficit Widens

U.S Futures Rebound After Tech Rout, Trade Deficit Widens

U.S stock futures were higher Tuesday, setting the stage for a rebound after a rise in treasury yields fueled a selloff in the technology sector. Dow Jones Industrial Average futures rose 0.4%, S&P futures increased 0.4%, and NASDAQ futures gained 0.4%.

Tech-heavy Nasdaq Composite dropped more than 2% on Monday. The 10-year US Treasury yield stabilized at around 1.49% level Tuesday morning.

Oil prices jumped higher, with front-month global benchmarks Brent Crude and US West Texas Intermediate both up more than 1%, after members of the Organization of the Petroleum Exporting Countries and their allied producers decided to maintain their previously agreed production plan.

data showed the US trade deficit widened to $73.30 billion in August from $70.3 billion in the previous month, compared with expectations for $70.8 billion, according to Bloomberg data.

At 10 am, the Institute for Supply Management’s Services index is due for release, with forecasters calling for a 60.0 level in September versus 61.7 in the previous month.

August Trade Deficit Widens on Surge in Imports: The US international trade deficit widened to $73.3 billion in August from a $70.3 billion gap in July, a larger deficit than the $70.8 billion gaps expected in a survey compiled by Bloomberg.

Exports rose modestly but were more than offset by a rebound in imports after a small decline in the previous month.

Consumer goods surged on pharmaceutical preps accounted for much of the import gain, reflecting plans for COVID-19 booster shots. Industrial supply imports also rose, but imports of autos and parts declined.

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U.S Futures Rebound After Tech Rout, Trade Deficit Widens