Wall St Set to Open Lower After Rally

Markets Reuters

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U.S. stocks were set to open lower on Friday as investors tailored their portfolios to benefit from President-elect Donald Trump's proposed policies.

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The decline on Nasdaq futures was more pronounced. Facebook , Apple, Netflix and Alphabet were off about 1 percent in premarket trading, indicating that Thursday's selloff in the technology sector was likely to continue.

While banks, pharmaceutical companies, defense and industrial stocks are likely to gain from Trump's proposals to simplify regulation and boost spending, his stance on limiting immigration and free trade run counter to some of the technology industry's most basic interests.

Investors also appeared to be cashing in on Thursday's rally in the Dow, which pushed the index to a record high. The index is on track to have its best week in five years.

Bank stocks surged to their highest levels since the 2008 financial crisis on Thursday after Federal Reserve officials said the Republican sweep of the House and the Congress could break policy gridlock, clearing the path to higher interest rates.

Economic growth prospects appear strong enough for the Federal Reserve to proceed with a gradual increase in interest rates, Fed Vice Chair Stanley Fischer said in his first remarks since the election of Trump as U.S. president.

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"I think post-Trump victory rally, which created portfolio adjustments, is peaking," said Peter Cardillo, chief market economist at First Standard Financial in New York.

"The Nasdaq is coming under pressure due to Trump's unfavorable attitude towards Silicon Valley."

Dow e-minis were down 47 points, or 0.25 percent at 8:22 a.m. ET (1322 GMT), with 50,317 contracts changing hands.

S&P 500 e-minis were down 9 points, or 0.42 percent, with 284,703 contracts traded.

Nasdaq 100 e-minis were down 37.75 points, or 0.8 percent, on volume of 47,834 contracts.

The three indexes are set to book gains for the week.

U.S. bond markets are closed for Veteran's Day on Friday. But already this week the 10-year Treasury yield has hit its highest levels in 10 months.

Oil prices dropped 1 percent as investor focus returned to persistent oversupply in the market. The dollar was flat at 98.79, after having risen everyday this week.

The central bank has sent out strong signals that it would raise interest rates at its meeting next month.

The preliminary reading of the University of Michigan consumer sentiment index for November is due at 10:00 a.m. ET.

Nvidia shares jumped 12.6 percent after the graphic chipmaker reported its biggest quarterly revenue growth in more than six years.

Walt Disney rose 2.13 percent to $96.98 after its executives promised earnings growth for the next two years. Barclays also upgraded the media company's stock to "equal weight" from "underweight."

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D'Silva)