(Reuters) – Nasdaq futures fell on Wednesday, while Dow indicators rose slightly as investors swapped heavyweight technology stocks with economically sensitive sectors following the approval of a U.S. infrastructure bill.
Trading volumes were muted ahead of inflation data expected later in the day.
The blue-chip Dow and the benchmark S&P 500 logged record closing highs on Tuesday, as economically sensitive stocks gained with the U.S. Senate’s passage of a $1 trillion bipartisan infrastructure package.
An additional $3.5 trillion investment plan to fight climate change and poverty is now on the cards, but faces stiff resistance from Republicans.
Equipment manufacturers Caterpillar Inc, Deere & Co, construction materials suppliers Vulcan Materials, and Nucor Corp rose between 0.4% and 1.9% in premarket trading, adding to sharp gains in the previous session on hopes of reaping gains from infrastructure projects.
Data due at 0830 a.m. ET (1230 GMT) will likely show U.S. consumer prices rose 5.3% year-on-year in July, according to a Reuters poll, and at a time when two U.S. central bank officials said inflation was already at levels that satisfy one leg of a key test for tightening policy.
Inflation has dictated market sentiment in the past few months, with market participants fearing higher price pressures could force the Fed to pare back its ultra-loose accommodative stance sooner than expected.
At 6:53 a.m. ET, Dow e-minis were up 23 points, or 0.07%, S&P 500 e-minis were down 2.75 points, or 0.06%, and Nasdaq 100 e-minis were down 27.75 points, or 0.18%.
Energy firms Exxon Mobil Corp, Schlumberger NV, Marathon Oil Corp, Occidental Petroleum Corp and Halliburton Co fell between 0.6% and 1.5%, tracking crude prices. [O/R]
Heavyweight technology-related stocks Alphabet Inc, Netflix Inc, Amazon.com, Microsoft Corp, Apple Inc, Tesla Inc and Facebook Inc, edged lower, weighed down by a rise in Treasury yields. [US/]
(Reporting by Devik Jain and Ambar Warrick in Bengaluru; Editing by Shounak Dasgupta)
