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* Intel jumps on $ 20 billion expansion plan
* GameStop collapses when selling shares
* Futures up: Dow 0.39%, S&P 0.42%, Nasdaq 0.69% (add comment; update stock prices)
March 24 (Reuters) – U.S. stock indexes are expected to open higher on Wednesday as Intel shares surged on plans to expand chip manufacturing capacity, while investors turned to business inquiries from March and another day of testimonies from the two top US economic officials.
The chipmaker’s shares jumped about 4% before it went to market, as it announced plans to spend up to $ 20 billion to build two factories in Arizona and open its factories to outside customers.
US-listed shares of rival Taiwan Semiconductor fell 2%, while semiconductor equipment makers Lam Research Corp, Applied Materials Inc and ASML Holding gained between 3.5% and 4.2%.
Major Wall Street indices stumbled on Tuesday, weighed down by concerns about the cost of infrastructure spending and potential tax hikes to foot President Joe Biden’s $ 1.9 trillion relief bill.
U.S. Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen will resume their hearings in Congress later today.
“Wall Street is looking for a new catalyst right now and is wondering if we are just going through a rocking pattern, which you could call a correction over time rather than a price correction,” said Sam Stovall, chief investment strategist at CFRA Research in New York.
“The latest stimulus package has already passed and people are wondering how much of a new $ 3 trillion infrastructure package will be approved.”
Stocks in energy and economically-linked banks have come under pressure recently, with investors posting profits after a strong rally in recovery hopes and turning to battered tech and growth companies, which have been hit by high bond yields.
Facebook Inc, Alphabet Inc, Apple Inc, Microsoft Corp and Amazon.com Inc rose 0.6% to 0.7%.
As of 8:23 a.m. ET, Dow E-minis were up 127 points, or 0.39%, S&P 500 E-minis, 16.5 points, or 0.42%, and Nasdaq E-minis 100, 89 , 25 points, or 0.69%.
Bitcoin gained 4.6% as Tesla Inc chief Elon Musk said the company’s electric vehicles can now be purchased using Bitcoin and the option will be available outside the United States later. this year.
Tesla shares rose about 1%.
GameStop Corp fell 13% after the video game retailer said it could sell new shares as the company that led the Reddit rally of “meme stocks” appears to be enjoying a surge of over 800% of its share price since January.
Energy stocks Exxon Mobil, Chevron Corp, Occidental Petroleum and Marathon Oil rose between 1.3% and 2.8%, as crude prices rebounded after falling 6% in the last session.
The IHS Markit flash reading at 9.45 a.m. ET is expected to show that business activity in the manufacturing and service sectors improved in March compared to the previous month. (Reporting by Devik Jain and Medha Singh in Bengaluru; Editing by Maju Samuel)
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