U.S. futures rise as energy, tech stocks in demand

U.S. equity-index futures rose as investors rushed into energy stocks riding a supply crunch and technology names that had become cheaper after a selloff.

U.S. equity-index futures rose as investors rushed into energy stocks riding a supply crunch and technology names that had become cheaper after a selloff.

Contracts on the the Nasdaq 100 Index rose 0.4 per cent after the digital-heavy gauge plunged to the lowest level since June on Monday. S&P 500 futures also climbed by the same degree. Marathon Oil Corp. and Occidental Petroleum Corp. posted some of the biggest gains in New York premarket trading. Facebook Inc. climbed a day after its social-media platforms suffered an outage.

Calm in global markets has been shattered by a surge in energy prices as the northern hemisphere braces for winter demand. That adds to a growing wall of worry spanning a debt crisis in China, elevated inflation, fading recovery and U.S. political bickering. Meanwhile, investors are preparing for a tapering of stimulus by the Federal Reserve as early as next month.

It is “the period of a multiplicity of shocks percolating through the financial markets leaving them in the fog, with many watching from the sidelines for clarity,” Sebastien Galy, a senior macro strategist at Nordea Invetsment, wrote in a note.

European natural gas contracts soared on Tuesday to an unprecedented 112.50 euros per megawatt-hour, compared with 15.49 euros in February. The continent is bracing for a winter crunch in energy supply, with German front-month power contracts also jumping to record levels. West Texas Intermediate crude headed for a seven-year high.