Dow Futures Rise 200 Points As Trump Administration Begins Transition Process



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Stock futures climbed Monday night after a strong session on Wall Street, boosted by positive vaccine news.

Futures contracts on the Dow Jones Industrial Average gained 200 points. S&P 500 futures rose 0.6% and Nasdaq 100 futures rose 0.4%.

The surge in the outlook for the future came after General Service Administration Chief Emily Murphy told President-elect Joe Biden that the Trump administration was making federal resources available for his transition to power.

Trump tweeted that he approved of the move, but said he would “continue the good fight” even if his re-election campaign has so far failed to secure legal victories that would invalidate votes for Biden.

Stocks kicked off Thanksgiving week on a high note on Monday as investors crammed into reopening transactions in vaccine optimism. The Dow Jones rose more than 300 points on its best day in a week, while the S&P 500 climbed 0.6%. The highly technological Nasdaq Composite underperformed with only a gain of 0.2%.

The Russell 2000 Small Cap Index jumped 1.9% to another all time high amid the turnover in battered companies.

Investors applauded more promising developments on the Covid-19 vaccine front. AstraZeneca said an interim analysis showed its vaccine to have an average effectiveness of 70%, following strong results from Pfizer-BioNTech and Moderna.

Major averages hit their highest after news Joe Biden will appoint former Federal Reserve Chairman Janet Yellen as Treasury secretary. Many see Yellen as a pro-market choice, given that it has overseen a long economic expansion with historically low interest rates and is likely to push for further fiscal stimulus.

“I think this is a strong sign that Biden will focus on rebuilding the economy rather than pursuing aggressive regulatory policy,” said Ed Mills, Washington policy analyst at Raymond James. “She will be an effective voice for more tax support than someone who was seen as a supporter … I would say this is a positive development for the market, but more importantly for the economy as a whole. . “

Still, investors weighed on vaccine news and the resurgence of new coronavirus cases, prompting some Wall Street companies, including Goldman Sachs and JPMorgan, to lower their near-term economic outlook.

The United States continues to have record Covid-19 infections, with the seven-day national average of new daily cases reaching 170,855 on Sunday, according to CNBC analysis of data from Johns Hopkins University.

Investors will be watching a slew of retail earnings ahead of the holiday season, including Best Buy and Dick’s Sporting Goods ahead of the bell, as well as Gap and Nordstrom after the close on Tuesday.

US markets will be closed for the Thanksgiving holiday on Thursday and will have a short session on Friday.

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