From the wsj’s “Tech-Stock Futures Fall as Democrats Lead in Georgia Elections” posted early Wednesday:
U.S. tech-stock futures tumbled Wednesday as investors bet that the Democrats were poised to take control of the Senate following early results from Georgia’s runoff elections.
Futures tied to the technology-heavy Nasdaq-100 index fell 1.7% on expectations that a Democrat-controlled Congress would lead to higher taxes and tighter regulations on tech giants. S&P 500 futures were down 0.3%.
Dow Jones Industrial Average futures rose 0.2%, while those tied to the Russell 2000, which tracks smaller stocks, jumped 2.7%. Both indexes are filled with companies beaten down by the coronavirus pandemic that stand to benefit from higher fiscal spending.
Big tech names were getting hardest hit. In premarket trading, Amazon,Alphabet, Netflix and Facebook were down more than 2%. “The negativity today is concentrated in these large cap, growth stocks, where, frankly, valuations are already quite high,” said Mike Bell, a global market strategist at J.P. Morgan Asset Management.
Meanwhile, stocks hit hard by the pandemic such as banks and industrials were jumping. Bank of America and Wells Fargo shares rose 2% premarket. “You are going to see the market viewing this as positive for the value stocks because of fiscal stimulus,” Mr. Bell said.
My take: Apple was not spared in the Georgia sell-off. Buying opportunity?