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* Tesla, Intel fell to poor forecasts due to supply concerns
* Netflix up after Ackman builds new stake
* Best US economic growth in 2021 since 1984
* Futures up: Dow 0.13%, S&P 0.33%, Nasdaq 0.44%(Adds comment, updated prices)
Jan 27 (Reuters) – Wall Street is set to open higher on Thursday, helped by gains in megacap tech -focused companies a day after hawkish comments from the Federal Reserve weighed on markets.
Netflix Inc jumped 4% in premarket trading as billionaire investor William Ackman acquired a new stake in the streaming service company worth more than $ 1 billion.
Tech-heavy Nasdaq futures rose 0.4%.
Apple, Microsoft, Meta Platforms and Alphabet gained nearly 1% each, with the iPhone maker set to report results after the markets close.
The two -year U.S. yield, which is sensitive to interest rate expectations, rose to their highest level since February 2020 after the Fed on Wednesday announced a rate hike in March and reaffirmed plans to end purchases of the bond in that month before launching a significant reduction in asset holdings.
Fed Chair Jerome Powell has warned that inflation remains beyond its long -term goal and supply problems are bigger and longer than previously thought.
Traders priced at nearly five rate increases in December after the Fed’s announcement, after previously full pricing for four.
“The market has priced in rate increases, (but) they haven’t fully priced in quantitative tightening, because we don’t know what the impact will be and we don’t know the impact,” said Thomas Hayes, managing member. at Great Hill Capital LLC in New York.
Adding to investor concerns is the aggravation of geopolitical tensions in Ukraine. The U.S. said on Wednesday that it had set a diplomatic path to address Russia’s demands in eastern Europe, while Moscow held security talks in the West and intensified its military deployment near Ukraine using new training.
The S&P 500 index crashed in the previous session reversing all of its early gains amid volatile trading, signaling a correction for its third consecutive session.
The bellwether index needs to close 10% or more of its record at the highest closing reached in January. 3, to confirm that it has entered the correction territory. It ended the session 9.3% below that level on Wednesday.
Latest data showed that the U.S. economy grew 6.9% in the fourth quarter, far short of economists ’expectations of 5.5% growth.
Meanwhile, the fourth-quarter earnings season is already in full swing with analysts expecting earnings from S&P 500 companies to grow 24.4% year-over-year, according to Refinitiv, on Wednesday.
Tesla Inc. fell 0.4% after warning that supply chain issues would last throughout 2022, while chipmaker Intel Corp fell 2.9% on a poor earnings forecast in the first quarter due to global problems. supply chain.
At 8:38 am ET, the Dow e-minis were up 43 points, or 0.13%, the S&P 500 e-minis were up 14.25 points, or 0.33%, and the Nasdaq 100 e-minis were up 62.5 points , or 0.44%.
Digital workflow company ServiceNow Inc gained 10.7% after reporting upbeat revenue and earnings for the fourth quarter, helped by strong subscription growth. (Reporting by Bansari Mayur Kamdar and Devik Jain in Bengaluru; Editing by Shounak Dasgupta)
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