U.S. stock futures ticked higher Thursday, signaling gains for technology stocks at the start of the second quarter ahead of a flurry of economic data.
Futures tied to the S&P 500 edged up 0.3% after the broad stocks gauge closed out a fourth consecutive quarterly advance on Wednesday. Contracts for the tech-focused Nasdaq-100 rose 0.9%.
Many investors are hopeful that stocks will continue to climb in the second quarter, aided by the prospect of a surge in economic growth as vaccinations become widespread and fresh spending programs from the Biden administration. Still, they point to risks stemming from rising bond yields, new lockdowns in Europe and signs of excess in corners in the market.
Some are questioning whether the switch out of technology stocks and into economically-sensitive sectors like banks and energy has gone too far. Having powered the broad market higher in 2020, the rally in tech stocks slowed in the first quarter as investors bought into companies that stood to benefit from the economic rebound.
“We are entering a period of time when there is a bit more risk, and for that I want to have a more balanced approach,” said Lars Skovgaard Andersen, investment strategist at Danske Bank Wealth Management. Mr. Andersen thinks information-technology stocks such as Microsoft and Salesforce.com would provide a cushion if cyclical stocks lose momentum.
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