MARKET SNAPSHOT: Techs Poised To Resume Selloff As U.S. Stock Futures Pitch Lower

By Barbara Kollmeyer, MarketWatch Features Dow Jones Newswires

U.S. stock futures pointed to losses at the start for Wall Street on Wednesday. Technology stocks were again under pressure, after more selling of the sector erupted in Asian markets.

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What are the main benchmarks doing?

Dow Jones Industrial Average futures fell 42 points, or 0.2%, to 24,133, while S&P 500 futures dipped 3 points, or 0.1%, to 2,625.25. Under even more pressure, Nasdaq 100 futures tumbled 23.25 points, or 0.4%, to 6,248.50.

Stocks closed lower on Tuesday (http://www.marketwatch.com/story/dow-looks-on-track-for-another-record-while-nasdaq-appears-set-to-fall-again-2017-12-05), in broad-based selling led by utilities and telecoms. The S&P 500 index closed down 0.4% at 2,629.57 for a third-straight day of losses. The Dow Jones Industrial Average gave up gains from earlier in the session to finish 0.5% lower at 24,180.64.

Reversing a gain of about 0.6% in early trade, the Nasdaq Composite ended 0.2% lower at 6,762.21. Tech stocks have by far seen the most selling this week, with investors seen as cashing in on big gains logged over the year. The index has lost 1.25% this week so far, outstripping a 0.2% loss for the Dow Jones Industrial Average and a 0.5% drop for the S&P 500.

Read:Risks 'high and rising' for big drop in stocks, bonds, says government watchdog (http://www.marketwatch.com/story/the-risks-from-a-big-stock-or-bond-market-drop-are-high-and-rising-government-watchdog-says-2017-12-05)

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See also: Here's how violent the stock-market rotation out of tech has been (http://www.marketwatch.com/story/heres-how-violent-the-stock-market-rotation-out-of-tech-has-been-2017-12-05)

What is moving markets?

(http://www.marketwatch.com/story/european-stocks-hampered-by-losses-for-tech-shares-2017-12-05)Concerns that the retention of the corporate alternative minimum tax in the Senate version of the Republicans' tax bill would hit tech companies harder than others has been seen as a factor in tech-stock selling.

The House's bill repealed the corporate AMT, but in a last-minute switch before passing its bill early Saturday morning, the Senate decided to keep the provision.

Read:Here's why the corporate AMT is a hurdle to a final tax bill (http://www.marketwatch.com/story/heres-why-the-corporate-amt-is-a-hurdle-to-a-final-tax-bill-2017-12-05)

What are strategists saying?

"Though it is still far beyond 20, 50 and 200-day moving averages and one robust headline away from record highs, the S&P 500 has nonetheless closed three consecutive daily losses. That is significant, as we haven't seen a series of bearish days this long since August 10th," said John Kicklighter, chief currency strategist at DailyFX.

"The Corporate Alternative Minimum Tax (AMT) was cited as another factor contributing to the weakness in the technology sector yesterday," noted Michael O'Rourke, chief market strategist at JonesTrading.

"The argument has been made that the corporate tax rate needs to be reduced from 35% to 20% in order to make U.S. companies competitive, but the insertion of a 20% Corporate AMT was enough to mildly upset markets and send K Street into panic mode," O'Rourke said in a note.

What are other assets doing?

(http://www.marketwatch.com/story/european-stocks-hampered-by-losses-for-tech-shares-2017-12-05)European stock futures indicated a drop at the start of trading Wednesday, while falls for tech and mining shares drove losses across Asia markets (http://www.marketwatch.com/story/asia-pacific-markets-drop-on-weakness-in-tech-mining-sectors-2017-12-05) .

The ICE Dollar Index also headed lower, down 0.2% to 93.199. Oil prices dropped, while gold futures rose modestly.

Bitcoin price moved further above $12,000 Wednesday, last trading around $12,339.67.

(END) Dow Jones Newswires

December 06, 2017 02:36 ET (07:36 GMT)