US pre-open: Stocks seen lower, with tech-heavy Nasdaq under the cosh

US futures pointed to a weaker open on Wall Street as investors continued to assess the implications of Donald Trump’s presidential victory, with volumes likely to be slightly lower than usual due to it being Veterans Day.

At 1155 GMT, Dow Jones Industrial Average and S&P 500 futures were down 0.2% and 0.6%, respectively, but futures on the tech-heavy Nasdaq were suffering the heaviest losses, down 1%.

Analysts said traders were moving away from technology stocks and into sectors set to benefit from Trump’s policies, such as the boost to infrastructure spending. Apple, Amazon, Facebook, and Yahoo were all lower in pre-market trade.

Meanwhile, oil prices retreated, with West Texas Intermediate down 1.4% at $44.04 a barrel and Brent crude down 1.2% at $45.27.

In currency markets, the pound jumped to a five-week high against the greenback, trading up 0.6% to $1.2622. “With all attention directed towards the shocking market-shaking presidential victory, some hard Brexit concerns may have eased consequently prompting buyers to attack,” said FXTM research analyst Lukman Otunuga.

Mike van Dulken, head of research at Accendo Markets, said: “Equity markets are voting risk-off into the weekend, perhaps worried about what a two-day break could deliver in terms of news about Trump's team and his plans once in office. Investor bias remains positive, suggesting benefit of the doubt and optimism that spending heavily and cutting taxes will help turn America around. A correction from post-election highs is, however, no surprise.”

President-elect Trump has promised a trillion-dollar programme to rebuild the country’s tunnels, highways, bridges and airports. In addition, he also hinted at plans to cut the corporate tax rate to 15% from 35%, which he reckons will encourage businesses to relocate to the US from countries such as Ireland, Canada, Germany and France.

David Morrison at SpreadCo, said: “As yesterday, there’s a significant divergence between the Dow and the Nasdaq as investors adjust to the Trump presidency. The feeling is that tech companies who rely on overseas manufacture (Apple for instance) could suffer if Trump follows through on his threat to impose import tariffs.

“In addition, Trump doesn’t appear to be a great fan of government subsidies for new technologies and clean energy. In contrast, construction, miners and materials are faring better on the expectation of infrastructure spending as fiscal stimulus replaces monetary stimulus. Rising bond yields have also helped to lift the financial sector. However, investors should be wary in case a bond pull-back turns into a rout.”

In corporate news, Nvidia rallied in pre-market trade after it said late on Thursday that third-quarter profit more than doubled.

On the data front, University of Michigan consumer sentiment is at 1500 GMT.