Nasdaq set to resurge as tech stocks steadies

nasdaq

Major U.S. stock indexes were headed for a higher open on Tuesday with the Nasdaq set to rebound after a steep selloff in the previous session, as U.S. bond yields retreated and investors scooped up beaten-down technology stocks.

Tesla Inc advanced about 6%, while Apple Inc, Amazon.com Inc, Facebook Inc and Microsoft Corp jumped about 2% each in early trading.

Signs that a $1.9 trillion coronavirus relief package was closing in on final approval sparked a spike in yields on Monday, pushing the tech-heavy Nasdaq to end more than 10% below its Feb. 12 closing high that confirmed a correction.

U.S. 10-year Treasury bond yields eased to 1.54% after hovering near 13-month highs of 1.613% in the prior session. Longer-dated yields have jumped over the last month as investors price in faster-than-expected economic rebound and higher inflation.

Higher yields can weigh even more on tech and growth stocks with lofty valuations, as they threaten to erode the value of their longer-term cash flows.

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