Tech Stocks Set to Recover, Facebook Rebounds—and What Else is Happening in the Stock Market Today

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Oil prices moved higher after OPEC+ stuck to plans to add crude to the market in November.

Apu Gomes / AFP via Getty Images

The stock market was rising Tuesday after a selloff Monday led by the technology sector, with shares in tech giant Facebook poised to recover following their 4.9% slump—the worst day for the stock since November 2020.

Futures for the Dow Jones Industrial Average indicated an open 100 points higher after the index fell 323 points Monday to close at 34,002, with S&P 500 futures poised for a similar start. The tech-heavy Nasdaq felt the worst of Monday’s selloff with a 2.1% decline, and Nasdaq futures were poised to begin a recovery with a 0.4% move higher.

Overseas, Tokyo’s Nikkei 225 fell 2.2% as traders reacted to the poor performance on Wall Street, while in Europe stocks were rebounding as the pan-European Stoxx 600 rose 0.6%.

The selloff Monday was felt broadly and came on the back of familiar pressures, with a 1.3% decline on the S&P 500 marking the third time in five sessions that it has lost more than 1%. Investors remained concerned about inflation, supply-chain issues pinching earnings, the future of central bank stimulus, and U.S. political friction over the debt ceiling and the $3.5 trillion reconciliation package stuck in Congress.

“Unlike some of the other declines of the last month, which have been quite obviously connected to a particular concern like Evergrande or the impact of higher yields, the latest selloff looks to be coming from a more generalized set of concerns, with those worries given a fresh impetus by yet another rise in energy prices yesterday as oil hit multiyear highs,” said Jim Reid, a strategist at Deutsche Bank.

“That spike in energy prices has led to renewed fears about inflation accelerating even further than current forecasts are implying, with knock-on implications for central banks and the amount of monetary stimulus we can expect over the coming months,” Reid added.

Oil’s latest advance came after the OPEC+ group of state producers agreed yesterday to keep to plans for increasing crude output by 400,000 barrels a day in November. Prices were elevated again Tuesday, with futures contracts for international benchmark Brent up 0.5% to around $81.70 and U.S. crude futures similarly higher around $77.90.

Shares in Facebook in particular were under pressure Monday, with the stock taking its largest one-day tumble in almost a year. The company is facing mounting regulatory and reputational concerns following the leak of internal documents by a whistleblower to The Wall Street Journal.

“Facebook shares fell on the whistleblower reveal, which threatens to do some damage to the company’s already well-tarnished reputation,” said Neil Wilson, an analyst at broker “We’ve been here before with Facebook and nothing has really stuck—but its Teflon character will be tested with these revelations. Twitter and Snap shares also fell in sympathy—regulators are coming for social media companies, mark it.”

Looking ahead, the market is focusing on the U.S. jobs report coming at the end of the week as an indication for when the Federal Reserve will begin slowing, or tapering, its Covid-19 pandemic-era program of monthly asset purchases, which add liquidity to markets.

“It looks like we are in for a bit of a chopfest in financial markets for the rest of the week, until Friday’s U.S. nonfarm payrolls gives the street some clarity on the Federal Reserve taper,” said Jeffrey Halley, an analyst at broker Oanda. “The game of blink surrounding the midmonth debt ceiling legislation deadline is introducing a heightened uncertainty.”

Here are 10 stocks on the move Tuesday:

Social-media stocks were set to rebound. After Facebook (ticker: FB) fell 4.9%, Twitter (TWTR) dropped 5.8%, and Snap (SNAP) slipped 5.3%, all three stocks were up around 1.3% in U.S. premarket trading.

Fast Retailing (9983.Japan), the owner of Uniqlo, fell 6.9% in Tokyo, after reporting domestic sales at the fashion retail chain fell more than 19% year-over-year in September.

High crude prices look to have boosted major oil companies, with BP (BP) up 1.6% and Royal Dutch Shell (RDS.A) rising 0.7% in London, as TotalEnergies (TTE) lifted 1% in Paris and Eni (E) climbed 1.1% in Milan. Eni was also affected by reports that it was closer to listing its gas, electricity, and renewables unit instead of selling a minority stake.

AstraZeneca (AZN) rose 0.4% in London, after the pharmaceutical company submitted an emergency-use authorization request to the Food and Drug Administration for a preventative treatment of symptomatic Covid-19.

British baker and purveyor of sausage rolls Greggs (GRG.U.K.) rose 3.8% in London after raising its full-year profit outlook.

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