U.S. futures experienced a surge early Monday as it is focused on a sell-off in tech company shares. It has led to the first weekly decrease in months.
Dow Jones Industrial Average soared 219 points or around 0.8 percent, a gain of higher than 170 points. Meanwhile, the S&P 500 stocks were higher by 1 percent. NASDAQ -100 were also up higher than 1.4 percent. It followed a rebound in tech shares.
There are a few companies that investors are closely monitoring at the moment. Apple shares were higher than two percent during pre-market trading. Investors have noticed that the market is following the tech leader despite suffering a slide at 13 percent this month.
Shares of Tesla experienced a rebound higher than two percent in the pre-market. Tesla once had surging shares, but it is down by more than 25 percent in early September.
Nvidia purchased Arm Holdings for $40 billion from SoftBank. Nvidia will do so using common stock and cash. The tech giant was higher at six percent in pre-market trading. Meanwhile, other chip companies also experienced a surge in shares like Micron, AMD, and Skyworks.
ByteDance has selected Oracle to be its U.S. tech partner over Microsoft. Oracle will have a significant role in its business operations. On Monday, Oracle’s stocks were higher at 6 percent during pre-market.
Also, Gilead has announced its acquisition of Immunomedics. The latter is currently expanding its cancer research. It is a $21 billion deal with Gilead using cash payments for the buyout. Meanwhile, stocks of Immunomedics soared higher than 100 percent in the pre-market on Monday.
S&P 500 dropped 2.5 percent last week and was recalled as the worst since the last week of June. It was also the first time S&P 500 concluded with lower shares in weeks since May. As of this month, it is down 4.6 percent.
NASDAQ Composite, composed mainly of tech shares, was the hardest hit last week and is down 4 percent. It is the worst since the start of the coronavirus pandemic.
Also, investors are starting to come out despite any hopes of lawmakers deciding on a new stimulus plan. According to Senator Mitch McConnell, chances of Democrats and Republicans settling on a deal are not good at the moment. Earlier, House Speaker Nancy Pelosi also said that the two parties have differences when it comes to covering coronavirus stimulus aid.