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Micron up on upbeat 2025 sales forecast
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Lululemon leaps on strong annual outlook
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Lucid Group rises on job cut plan
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Futures up: Dow 0.66%, S&P 0.81%, Nasdaq 0.90%
(Updates prices, details)
By Amruta Khandekar and Ankika Biswas
March 29 (Reuters) - Wall Street's main indexes were set
to open higher on Wednesday as easing worries about a banking
crisis lifted risk sentiment, while investors await economic
data to gauge the Federal Reserve's monetary policy path.
Market worries about stress in the banking system have eased
following a U.S. regulator-backed sale of failed lender Silicon
Valley Bank's assets as well as lack of fresh signs of trouble
in the sector since the buyout deal.
Regional U.S. bank stocks were mixed, with Truist Financial
Corp and Western Alliance Bancorp up 1% and
0.6%, respectively, in premarket trade, while First Republic
Bank fell 1.3%.
Larger peers Bank of America , Goldman Sachs and JPMorgan Chase & Co rose between 0.7% and 1%.
A slight retreat in Treasury yields, which had rebounded
over the past two sessions, lifted major technology and growth
stocks, with Microsoft Corp , Alphabet and
Meta Platforms up between 0.8% and 1.4%.
"Markets are calmer as the tension of the banking situation
is lessening. The fact that yields are a bit lower this morning
is likely to induce stock markets to move higher," said Peter
Cardillo, chief market economist at Spartan Capital Securities
in New York.
The banking turmoil, which started earlier in March with the
collapse of Silicon Valley Bank, has led markets to reprice
expectations of future monetary tightening by the Federal
Reserve.
Traders' bets are tilted towards no rate hike by the Fed in
May, with odds of a 25-basis-point increase at 39%, according to
CME Group's Fedwatch tool.
"We'll (likely) see the Fed ending its campaign at the May meeting and the reason for that is because recession is not far away," Cardillo said.
Michael Barr, the Fed's vice chairman for supervision, will testify before Congress for a second day after he criticized SVB's risk management on Tuesday. Investors will also monitor a report on pending home sales later in the day, while a key inflation reading expected at the end of the week will provide more clues on the Fed's monetary tightening plans. The CBOE volatility index , known as Wall Street's fear gauge, fell to its lowest since March 9, reflecting easing investor anxiety. At 8:15 a.m. ET, Dow e-minis were up 216 points, or 0.66%, S&P 500 e-minis were up 32.5 points, or 0.81%, and Nasdaq 100 e-minis were up 114.25 points, or 0.9%. Among major stock moves, Micron Technology Inc advanced 3.5% after the chipmaker forecast a boost to sales in 2025 from artificial intelligence. U.S.-listed shares of Alibaba Group Holding Ltd slipped nearly 1% before the bell, a day after touching a more than one-month high on the internet giant's revamp and listing plans. Lululemon Athletica Inc jumped 16.6% after forecasting annual sales and profit above estimates, while Lucid Group Inc gained 2.0% on plans to lay off about 18% of its workforce. Boeing Co rose 1.1% after the chief executive of Ryanair Holdings said the company had resumed talks with the U.S. planemaker for 100 new aircraft. (Reporting by Amruta Khandekar; Editing by Dhanya Ann Thoppil and Vinay Dwivedi)
