Futures advance as Big Tech continues to recover
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Airbnb slides after forecasting Q3 revenue below estimates
Fortinet jumps after raising FY revenue forecast
CVS Health down after cutting FY profit forecast
Futures up: Dow 0.8%, S&P 1.2%, Nasdaq 1.5%
Updated at 7:05 a.m. ET/ 1105 GMT
By Shubham Batra and Shashwat Chauhan
Aug 7 (Reuters) -U.S. stock index futures jumped on Wednesday as risk appetite returned after a steep selloff earlier in the week, and cautious comments on interest-rate hikes by an influential Bank of Japan policymaker.
Global equity markets gained after Bank of Japan (BOJ) Deputy Governor Shinichi Uchida said the central bank would not raise interest rates when financial markets are unstable, pushing the yen JPY=EBS lower, boosting market sentiment.
The BOJ's 0.25% rate hike on July 31, a level unseen in 15 years, had sparked a global stocks rout as the low-yielding yen, widely used for acquiring high-yielding assets such as stocks, surged and investors unwound their sharp positions of the currency carry trades.
"The silver lining is that, while the current volatility might be painful, a reset after a period of excessive optimism could lead to a healthier market," said Oliver Blackbourn, portfolio manager-multi-asset team at Janus Henderson.
"It's important to understand that a soft landing is being questioned but is not out of the question, meaning economic resilience and declining interest rates could ultimately help to lift risk assets again."
Despite recent volatility, the S&P 500 .SPX is still up about 10% so far this year, while the tech-heavy Nasdaq .IXIC is up 9%, boosted by rallying tech stocks on optimism around the prospects of artificial intelligence (AI).
Big technology names such as Nvidia NVDA.O and Amazon.com AMZN.O continued their recovery after falling sharply on Monday, rising about 2% each in premarket trading.
Chip stocks also continued to recover, with popular names like AMD AMD.O gaining 2%, while Marvell Technology MRVL.O added 2.6%.
Wall Street's main indexes ended Tuesday with healthy gains after comments from Federal Reserve officials eased worries of a U.S. recession following weak economic data last week.
At 07:05 a.m. ET, Dow E-minis 1YMcv1 were up 324 points, or 0.83%, S&P 500 E-minis EScv1 were up 63.5 points, or 1.21% and Nasdaq 100 E-minis NQcv1 were up 267.5 points, or 1.47%.
The spotlight shifted back to earnings, with Fortinet FTNT.O jumping 14.7% after the cybersecurity firm raised its annual revenue forecast.
Wynn Resorts WYNN.O advanced 4.1% after the casino operator posted a rise in second-quarter profit.
On the flipside, Airbnb ABNB.O slid 15.1% after the company forecast third-quarter revenue below estimates and warned of shorter booking windows, suggesting travelers were waiting until the last minute to book due to economic uncertainty.
Super Micro Computer SMCI.O lost 12.5% after reporting quarterly adjusted gross margin below estimates. Rival Dell Technologies DELL.N dropped 2.7%.
Amgen AMGN.O fell 3% after the drugmaker said second-quarter profit slipped 1% as higher expenses offset a 20% increase in revenue.
CVS Health CVS.N eased 2.7% after the healthcare conglomerate cut its 2024 profit forecast, hit by increased medical costs at its health insurance unit as demand for healthcare services remained elevated.
The markets now await more commentary on monetary policy from U.S. central bank officials next week, in the run-up to the Jackson Hole event where Fed Chair Jerome Powell is scheduled to speak.
Reporting by Shubham Batra and Shashwat Chauhan in Bengaluru; Editing by Sriraj Kalluvila and Shinjini Ganguli
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