Stock futures were flat in overnight trading after Yellen pushed for more stimulus

Equity futures stagnated Thursday evening after Treasury Secretary Janet Yellen said a significant Covid relief program was still needed for a full recovery in the United States.

Futures contracts on the Dow Jones Industrial Average only plunged 15 points. S&P 500 futures and Nasdaq 100 futures both traded slightly lower.

Yellen told CNBC on Thursday after the bell that more stimulus was needed even as some economic data suggested a quick rebound. She added that a $ 1.9 trillion stimulus deal could help the United States return to full employment within a year.

“We think it’s very important to have a big package [that] responds to the pain this has caused – 15 million Americans behind on their rent, 24 million adults and 12 million children who do not have enough to eat, small businesses fail, ”Yellen told CNBC’s Sara Eisen in a “Closing Bell” interview.

“I think the price of doing too little is much higher than the cost of doing something big. We believe the benefits will far outweigh the costs in the long run,” she added.

The stock market rally to record highs appears to have been muted as fears of rising rates and inflation crept in. The S&P 500 fell for a third day in a row Thursday after a worse-than-expected reading on jobless claims as well as weak forecasts from Walmart.

Many on Wall Street believe that for the market to continue its upward march, expectations of a new fiscal stimulus and a smooth reopening must come true.

“Much of our rationale for further gains from here depends on the continued belief that the key drivers that have helped lift the market to current levels will remain intact,” said Scott Wren, senior global market strategist for Wells Fargo, in a note. One of the drivers is “additional stimulus from Congress that will help bridge the gap between when vaccines are widely distributed.”

To subscribe to CNBC PRO for exclusive news and analysis and live business day programming from around the world.