Wall Street futures pointed to a rebound after high-flying momentum stocks suffered a sharp selloff, driven by fears that Federal Reserve Chairman Kevin Warsh won't act quickly enough against inflation. BTIG's Jonathan Krinsky says some reprieve is warranted following what he calls the largest and fastest momentum-stock crash in modern history, but he warns against buying the rebound too quickly.
U.S. index futures signaled a rebound for Thursday's session, with contracts tied to the Nasdaq-100 climbing 1.37% and futures on the S&P 500 and Dow Jones Industrial Average adding 0.62% and 0.42%. The rebound follows what MarketWatch called a historic crash in high-flying stocks.
BTIG's chief market technician Jonathan Krinsky said some reprieve is warranted after the largest and fastest momentum-stock crash in modern history. Still, he cautioned against buying the dip too quickly, in what the report called a potential trap for a quick tech rebound.
The Dow Jones Industrial Average sank 2.19% to 51,594.14, the S&P 500 fell 1.52% to 7,316.15, and the Nasdaq Composite dropped 1.74% to 24,442.94. The Invesco QQQ Trust, which tracks the Nasdaq-100, fell 2.04%, while the SPDR S&P 500 ETF Trust slipped 1.54%.
Arm Holdings tumbled 8.11% and Qualcomm fell 4.42%, pulling the Philadelphia Semiconductor Index down 5.33%. The VIX volatility index, meanwhile, eased 6.39% to 19.34.
Source: MarketWatch (snippet-based)
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