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US STOCKS-Futures rise as growth stocks bounce, economic data eyed

Credit: REUTERS/BRENDAN MCDERMID

U.S. stock index futures edged higher on Wednesday as growth stocks bounced from a steep sell-off in the previous session, while investors awaited data on private jobs growth and service sector activity in April.

By Shreyashi Sanyal

May 5 (Reuters) - U.S. stock index futures edged higher on Wednesday as growth stocks bounced from a steep sell-off in the previous session, while investors awaited data on private jobs growth and service sector activity in April.

Megacap technology-related companies including Apple Inc AAPL.O, Microsoft Corp MSFT.O, Amazon.com Inc AMZN.O, Facebook Inc FB.O and Alphabet Inc GOOGL.O rose between 0.3% and 0.9% in premarket trading.

Value stocks, that stand to benefit more from economic recovery, also gained, with oil major Chevron Corp CVX.N adding 1.3%, lender Goldman Sachs Group Inc GS.N up 0.7% and heavy machinery maker Caterpillar Inc CAT.N gaining 0.3%.

The S&P 500 value index .IVX has risen 15.1% so far in the year, while its growth counterpart .IGX is up 7.1%.

U.S. Treasury Secretary Janet Yellen said on Tuesday she sees no inflation problem brewing, downplaying earlier comments that rate hikes may be needed to stop the economy overheating as President Joe Biden's spending plans boost growth.

The initial comments made by Yellen deepened a sell-off in tech stocks on Tuesday.

Market participants are now awaiting monthly jobs data from payrolls processor ADP, which is expected to show additions of 800,000 last month, compared to 517,000 job additions in March.

A more comprehensive reading in the form of the Labor Department's non-farm payrolls data is due Friday.

Also on the radar is the Institute for Supply Management's non-manufacturing purchasing managers' index, which is expected to show a slight rise in April from March.

At 7:06 a.m. ET, Dow e-minis 1YMcv1 were up 77 points, or 0.23%, S&P 500 e-minis EScv1 were up 14 points, or 0.34%, and Nasdaq 100 e-minis NQcv1 were up 68.75 points, or 0.51%.

Ride-hailing company Lyft Inc LYFT.O rose 5.9% after it surprised Wall Street with significantly lower losses than expected.

Rival Uber Technologies Inc UBER.N is set to report earnings after markets close on Wednesday.

T-Mobile US Inc TMUS.O gained 2.4% as it raised its full-year postpaid subscriber net additions forecast.

(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Shounak Dasgupta)

((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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