US STOCKS-Futures rebound after volatile week, takeover talks boost VMware
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* Futures up: Dow 1.11%, S&P 1.21%, Nasdaq 1.05%
May 23 (Reuters) - Wall Street futures rose on Monday,
helped by a bounce in growth stocks and banks, after the
benchmark S&P 500 hovered near a grim market milestone at the
end of last week.
Investors will keep a close eye on the slew of economic data
expected this week that could shed new light on the health of
U.S. economy against the backdrop of a steep selloff in stocks
since January.
U.S. stock indexes plunged further last week as dismal
forecasts from Walmart Inc (WMT) and other retailers added to
worries about surging inflation and its impact on consumers and
economic growth.
The benchmark S&P 500 fell over 20% from its Jan. 3
record closing high at one point on Friday, pushing it to the
brink of confirming a bear market. The index is now down 18.7%
from its all-time closing high.
Cloud service provider VMWare (VMW) surged 21.2% in
premarket trading after reports over the weekend said chipmaker
Broadcom Inc (AVGO) is in talks to acquire the company.
Broadcom (AVGO) fell 5.2%.
Beaten-down megacap growth stocks including Apple Inc (AAPL)
, Microsoft Corp (MSFT), Tesla Inc (TSLA), Alphabet
Inc (GOOG), Meta Platforms (FB) and Amazon.com (AMZN)
gained between 0.7% and 1.3%.
JPMorgan Chase & Co (JPM) rose 1.6% after the biggest U.S.
bank by assets lifted its outlook for net interest income,
relieving some worries that the lender might be starting to lose
its edge.
Readings on the second estimate of first-quarter U.S. GDP,
PCE price index and durable goods data for April are due this
week, likely providing clues on how the world's largest economy
is faring amid decades-high inflation.
The Federal Reserve's May meeting minutes, due on Wednesday,
will be closely parsed for signs on how aggressively the U.S.
central bank is planning to raise interest rates. Money markets
are pricing in 50-basis point rate hikes by the Fed in June and
July..
At 07:00 a.m. ET, Dow e-minis were up 347 points,
or 1.11%, S&P 500 e-minis were up 47 points, or 1.21%,
and Nasdaq 100 e-minis were up 124.5 points, or 1.05%.
Meanwhile, U.S. President Joe Biden said on Monday he was
weighing cutting tariffs on Chinese goods, while increasing
calls on OPEC to raise oil production as he grappled with a
politically damaging wave of inflation.
(Reporting by Devik Jain and Anisha Sircar in Bengaluru;
Editing by Saumyadeb Chakrabarty)
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