U.S. stock futures rose sharply on Wednesday as traders tried to recover from a tech-led pullback in the previous session. Dow Jones Industrial Average futures were up 261 points, or nearly 1%. S&P 500 futures climbed 0.7% and Nasdaq 100 futures gained 0.9%. The S&P 500 snapped a seven-day winning streak in the previous session as tech shares such as Microsoft, Facebook and Apple all struggled. Those declines came as the S&P 500 tried to reach its Feb. 19 record.
President Donald Trump said late Tuesday that the U.S. will buy 100 million doses of Moderna's experimental coronavirus vaccine. "We are investing in the development and manufacture of the top six vaccine candidates to ensure rapid delivery," Trump said. Moderna said the deal is worth $1.53 billion and gives the government the option to buy an additional 400 million doses. Moderna shares rallied more than 11% in the premarket on the news.
Tesla shares jumped more than 6% in the premarket after the electric-car maker announced a 5-for-1 stock split. The split will take effect at the close of Aug. 31. While a stock split does nothing to change the company's value in the market, it does theoretically make it more affordable for small investors to buy the stock. Tesla shares have been on fire this year, surging more than 228%.
Democratic presidential candidate Joe Biden announced Tuesday that his running mate will be Sen. Kamala Harris, making her the first-ever Black woman to appear on a major party ticket. Some Wall Street executives cheered the decision. For example, Marc Lasry, CEO of Avenue Capital Group and co-owner of the NBA's Milwaukee Bucks, said Harris will help "Joe immensely. He picked the perfect partner." President Donald Trump also reacted to the news, tweeting on Wednesday that Harris is "the kind of opponent everyone dreams of."
Texas Gov. Greg Abbott said the coronavirus outbreak in the state needs to be curbed before bars can reopen. He said if the state's positivity rate returned to a low level, "well below" 10%, "then bars may be allowed to return." Abbott warned, however, that Texas has "to be vigilant right now" and that the coronavirus has "not left the state of Texas."