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US STOCKS-S&P 500, Nasdaq set for higher open on tech boost, Tesla gains

Published 22-03-2021, 06:36 pm
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(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.)

* Tesla gains as Ark Invest sets 3-year PT of $3,000

* Kansas City surges on $25 bln buyout deal from Canadian Pacific

* MSCI Turkey ETF sinks after shocking exit of c.bank governor

* Futures: Dow down 0.06%, S&P up 0.19%, Nasdaq rises 0.69% (Adds comment, details; updates prices)

By Medha Singh and Devik Jain

March 22 (Reuters) - The S&P 500 and the Nasdaq were headed for a higher opening on Monday as technology stocks looked set to rebound from a recent pullback that was sparked by a surge in bond yields.

Heavyweight Tesla Inc TSLA.O rose about 3% to $676 in pre-market trading as Cathie Wood's Ark Invest said it expects electric-car maker's share price to hit $3,000 by 2025. The $26.6 billion ARK Innovation ARKK.P ETF counts Tesla as its largest holding. sharp run-up in Treasury yields since mid-February has dictated the course of equities trading, weighing on high-flying tech stocks.

"Tech will get a bid if yields moderate and that'll probably be the theme for the next couple of months," said Thomas Hayes, chairman at Great Hill Capital in New York.

Futures tied to the tech-heavy Nasdaq 100 climbed about 0.9% to start the week as the benchmark 10-year Treasury yield US10YT=RR dipped to 1.688% from a near fourteen-month high. The index .NDX is still down more than 6% from its Feb. 12 record close.

The S&P 500 .SPX and the Dow .DJI , however, clinched all-time highs as early as last week on bets that stimulus and vaccine rollouts would lead to a strong rebound in the U.S. economy.

Kansas City Southern (NYSE:KSU) KSU.N jumped about 17% after Canadian Pacific Railway Ltd CP.TO agreed to acquire the railroad operator in a $25 billion cash-and-stock deal to create the first railway spanning the United States, Mexico and Canada. 08:26 a.m. ET, Dow E-minis 1YMcv1 were down 19 points, or 0.06%, S&P 500 E-minis EScv1 were up 7.25 points, or 0.19% and Nasdaq 100 E-minis NQcv1 were up 88.25 points, or 0.69%.

Intel Corp INTC.O , Microsoft Corp MSFT.O and Apple Inc AAPL.O led gains among Dow components in trading before the bell.

Big U.S. lenders including Goldman Sachs (NYSE:GS) GS.N , Citigroup (NYSE:C) C.N and Bank of America (NYSE:BAC) BAC.N , which have enjoyed a rally on brightening economic prospects, slipped about 1% each.

The iShares MSCI Turkey ETF TUR.O sank about 18% as President Tayyip Erdogan's decision to oust a hawkish central bank governor sparked fears of a reversal of recent rate hikes.

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