Tech stocks will pay dividends in the future.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, US, September 7, 2022. REUTERS/Brendan McDermid

Sept 9 (Reuters) – U.S. stock index futures, led by technology and high-growth stocks, rose broadly next week for clues on the pace of the Federal Reserve’s interest rate hike.

Fed Chairman Jerome Powell’s hawkish comments weighed on trading on Thursday, but the three major indexes were still on course to post weekly gains and snap three weeks of losing streaks.

In mid-August, the S&P 500 (.SPX) and the tech-heavy Nasdaq (.IXIC) fell 7% and 9.6%, respectively, after central bank officials kept their stance. Inflation.

The CBOE Volatility Index (.VIX), a gauge of investor anxiety, rose 23 points, above its long-term average of 20.

Meanwhile, the US dollar retreated from recent highs after a 75-basis point hike by the European Central Bank last Thursday to boost sentiment and provide some relief to global stocks and currencies.

Top growth stocks Tesla ( TSLA.O ), Apple Inc ( AAPL.O ), Alphabet Inc ( GOOGL.O ), Amazon.com Inc ( AMZN.O ) were up about 1 percent each in pre-market trading.

Investors will be watching next Tuesday’s August US inflation report to gauge the possibility of another big interest rate hike from the Fed at its policy meeting later in the month.

Traders are adding an 87% chance of a 75-basis-point hike in the next meeting, up from 57% a week earlier, according to CME Group’s FedWatch tool.

At 6:41 a.m. ET, Dow e-minis were up 264 points, or 0.83%, S&P 500 e-minis were up 36.5 points, or 0.91%, and Nasdaq 100 e-minis were up 143.25 points, or 1.16%.

Shares of Digital World Acquisitions Corp ( DWAC.O ), the company that agreed to take former U.S. President Donald Trump’s social media company public, rose 6.2 percent after it said it will extend its IPO by three months.

Shares of Caterpillar Inc ( CAT.N ) rose 1.6 percent after the company reached a tax settlement with the U.S. IRS.

Reporting by Amruta Khandekar in Bengaluru; Edited by Anil D’Silva

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