Investing.com -- Tech stocks are rebounding after the Federal Reserve sent the message that interest rates will be higher for longer as it tries to battle inflation.
At 10:55 ET (14:55 GMT), the Dow Jones Industrial Average was up 42 points or 0.1%, while the S&P 500 was up 0.5% and the NASDAQ Composite was up 0.9%.
Wall Street set for losing week
The main indices on Wall Street closed sharply lower Thursday, as bond yields surged in the wake of the Fed meeting, with the benchmark 10-year Treasury yield climbing to its highest level since 2007.
This has pressured the Nasdaq Composite, which is on track to for its worst week since March. The blue-chip Dow Jones Industrial Average and the S&P 500 are also headed for a down week.
The Fed held rates steady this week, but signaled it might raise them one more time this year and keep them elevated for longer than anticipated as it tries to slay inflation.
The U.S. central bank Fed officials also signaled two rate cuts next year, half the number they anticipated in their last round of forecasts in June.
September PMI data due
The U.S. economic data slate will center around the purchasing managers index reports for September on Friday. The S&P Global U.S. manufacturing index was 48.9, better than the expected reading of 48, still in contraction territory. The services index was 50.2 for September, slightly lower than the expected 50.6.
The equivalent data released earlier in Europe indicated that the eurozone economy will likely contract in the third quarter, with the flash composite index coming in at 47.1 in September, a slight improvement from August's 33-month low of 46.7.
Activision acquisition receives boost
In corporate news, the U.K. competition regulator signaled that Microsoft’s potential acquisition of Activision Blizzard (NASDAQ:ATVI) may now be approved.
Microsoft (NASDAQ:MSFT) restructured its proposal, offering the divestment of cloud rights for existing Activision games including the popular “Call of Duty,” to French game publisher Ubisoft Entertainment.
Investors will also be keeping an eye on negotiations to end the UAW strike against Detroit's Big Three auto makers. United Auto Workers President Shawn Fain said the union had made progress with Ford Motor Company (NYSE:F) but will expand strikes to additional facilities at General Motors Company (NYSE:GM) and Stellantis NV (NYSE:STLA).
In addition, a U.S. government shutdown draws nearer with the midnight Sept. 30 deadline on a funding deal just over a week away and no agreement between the two political parties in sight. Hollywood writers were also negotiating with studios to reach a labor agreement that could end their strike.
Crude helped by Russia export ban
Oil prices rose Friday on growing expectations of tighter supplies, following the previous session's news that Russia has banned exports of gasoline and diesel with immediate effect to stabilize the domestic fuel market.
This added to an already tight supply situation as the Organization of the Petroleum Exporting Countries and allies maintained previously announced production cuts.
(Oliver Gray contributed to this item.)