Trying to recover from the tech sell-off last week, Dow futures attempted to rise with Nvidia and Oracle making big business moves.
Dow Jones Industrial Average futures pointed to a gain of more than 200 points at the open. The S&P 500 and Nasdaq-100 futures were also in positive territory.
The tech sector in the S&P 500 fell more than four percent last week. One of those companies that were affected by the drop was Apple, which dropped more than seven percent.
Sean Darby, a global equity strategist at Jefferies thinks that this tech decline could be short-lived as he told CNBC:
“There is nothing untoward about the fundamentals nor earnings expectations. An upside surprise would come from further dollar weakness, while the emergence of a vaccine and/or a rise in long-term rates would curb performance.”
ByteDance chooses Oracle over Microsoft on TikTok acquisition
Oracle’s stock price off-hours have gained almost 9% as of this writing and it looks like it is poised for a rally due to the recent acquisition.
Nvidia buys Arm Holdings for $40 billion
It looks like the recent RTX 3000 series for Nvidia has not stopped the company from doing other big moves.
The chipmaker struck a deal from SoftBank in buying Arm Holdings for US$40 billion [AU$ 55 billion] over the weekend. Arm Holdings is a mobile phone chip designer that SoftBank acquired last 2016 for US$31.4 billion.
This recent deal will include US$21.5 billion in Nvidia stock and US$12 billion in cash, including US$2 billion payable at signing as per CNBC.
Nvidia stock price during off-hours jumped over seven percent and the market sentiment might carry it to higher prices.
Investors observe on how the Dow Jones will react based on the given news this week by these two companies in the U.S. markets as well as the recent vaccine developments from AstroZeneca.
Featured image courtesy of Anthony Quintano/Flickr