Inventory futures are larger after rising rates of interest hit expertise shares

US stock index futures rose during Wednesday’s overnight trading after technology stocks slumped again as investors digested the effects of higher interest rates.

Futures contracts linked to the Dow Jones Industrial Average gained 141 points. S&P 500 futures and Nasdaq 100 futures both traded in positive territory as well.

The Dow and S&P 500 rose during regular trading. The 30-share Dow rose about 90 points in its fifth positive session in the last six, while the S&P 500 rose 0.16%, breaking a 2-day losing streak.

The Nasdaq Composite lost 0.24% for the fourth consecutive negative session. The tech sector gave way again on Wednesday and is now down 4% for the week, making it the worst S&P group.

The tech downturn came as the 10-year government bond yield hit 1.56% on Wednesday, after rising to 1.567% on Tuesday. The move higher is putting pressure on tech stocks as it makes promised future cash flows less attractive.

Investors are also following the latest Washington headlines. On Wednesday, the House of Representatives passed a bill that would suspend the U.S. debt ceiling after Treasury Secretary Janet Yellen told House Speaker Nancy Pelosi on Tuesday that Congress had until October 18 to raise or suspend the debt ceiling.

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However, Senate Republicans have announced that they will reject the bill.

“While the political dynamics remain mixed, we believe that the negotiations on the US debt ceiling will be successful in time and a shutdown of the US government can be avoided,” said UBS in a statement to its clients on Tuesday evening. “Overall, our baseline is still solid economic growth and a gradual tightening of monetary conditions,” added the company. Based on these predictions, UBS advises investors to favor stocks over bonds.

All major averages are firmly in the red for the week. The Dow is on track for its fourth negative week in the past five, while the S&P and Nasdaq Composite are on track for their worst weeks since February.

Wells Fargo noted that pullbacks are to be expected. “This is a normal reassessment of risk based on higher cost of capital and greater market uncertainty,” the company said in a statement to clients on Wednesday.

On the data front, the initial jobless claims for the previous week are released. Economists reckon with a circulation of 335,000 copies. The Bureau of Economic Analysis will also release its third estimate for Q2 GDP on Thursday.

In terms of earnings, Bed Bath & Beyond will publish quarterly results ahead of market opening.

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