Stock futures are somewhat higher after hitting technology stocks at an increasing rate

The U.S. stock index futures traded higher overnight on Wednesday, with technical stocks declining again as investors digested the impact of higher rates.

The futures contract with Dow Jones Industrial Average gained 81 points, or 0.24%. The S&P 500 futures are up 0.24%, while the Nasdaq 100 futures are up 0.24%.

Dow and S&P 500 have been trading regularly. The 30-stock Dow has advanced nearly 90 points for its fifth positive session in the last six, while the S&P 500 rose 0.16%, breaking the 2-day losing streak.

The Nasdaq Composite, meanwhile, fell 0.24% for its fourth straight negative session. The technology sector fell again on Wednesday and is now down 4% for the week, making it the worst-performing S&P group.

The technical decline occurred when the 10-year Treasury yield reached a high of 1.56% on Tuesday, up 1.567% on Tuesday. The higher move is putting pressure on technology stocks as it makes the promised future cash flow look less attractive.

Investors are also watching the latest headlines in Washington. The House passed a bill Wednesday that would suspend the U.S. debt limit, while Treasury Secretary Janet Yellen told House Speaker Nancy Pelosi on Tuesday that Congress had until Oct. 18 to raise or suspend the 18-day limit.

However, Republicans in the Senate have said they will reject the law.

UBS said in a note to clients on Tuesday evening, “Although political dynamics remain uneven, we believe the U.S. debt limit negotiations will succeed in time and the U.S. government will close.” “Overall, our base case still reflects strong economic growth and a gradual tightening of the financial situation,” the firm added. Based on this assumption, UBS advises investors in favor of equities rather than bonds.

All major red strongly for the average week. The Dow is tracking for its fourth negative week in the last five, while the S&P and Nasdaq Composite are tracking for their worst week since February.

Wells Fargo noted that pullback is expected. “This is a normal re-pricing of risk based on high cost of capital and greater uncertainty in the market,” the firm said in a note to clients on Wednesday.

On the data front, the previous week’s initial unemployment claims will be published. Economists expect a print of 335,000. The Bureau of Economic Analysis will also release its third estimate of Q2 GDP on Thursday.

When it comes to earnings, Bed Bath & Beyond will report quarterly results before the market opens.

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