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U.S. stock index futures rose in Sunday night trading, with major averages appearing to accelerate gains after the best week since November.
Dow Jones-related futures gained 75 points, or 0.27%. S&P 500 futures were up 0.3%, while Nasdaq 100 futures were up 0.33%.
The S&P 500 closed at a record high Friday and posted its fifth consecutive positive session for the first time since August. The Dow Jones is also on its longest daily winning streak since August, while the Nasdaq Composite posted its fourth positive session in five on Friday. The high tech index also closed at a record high.
“We are still in a bull market in the early stages of a growing economic recovery,” said Michael Wilson, chief US equity strategist at Morgan Stanley on Sunday. “We continue to recommend the actions that are most conducive to improving the economic environment as vaccines are distributed and normal activities resume,” he added.
All three big averages ended the week in the green, each posting their best week since November as fears of squeezing out a handful of stocks leading to wider market contagion subsided. The Russell 2000, meanwhile, are on their longest daily winning streak since May, and gained 7.7% last week for their best weekly performance since June.
“Stocks continue to climb and probably hit the 4000 level for the S&P 500,” said JC O’Hara, chief market technician at MKM Partners. “The trends continue to be positive … The severity of the upward slope should continue to attract money quickly, but in the longer term, patient money will be kept away until a setback to occur, ”he added.
The Senate and House each passed a budget resolution on Friday, beginning the reconciliation process that would allow President Joe Biden’s $ 1.9 trillion bailout to pass through the Democratic-held Senate by simple majority.
The package includes $ 1,400 stimulus checks, additional unemployment benefits, and funds for the Covid-19 vaccine and testing.
Treasury Secretary Janet Yellen said on Sunday that if Biden’s stimulus package passes, the United States could return to full employment by 2022.
“There is absolutely no reason why we are suffering from a long, slow recovery,” Yellen said in an interview with CNN’s “State of the Union”. “I would expect that if this package were passed we would return to full employment next year.”
Meanwhile, another busy week of earnings is underway with 78 components of the S&P 500 set to release quarterly results. Some of the names on the bridge include Cisco, Twitter, Yelp, Uber, MGM, Mattel, GM, Coca-Cola and Disney.
On the coronavirus front, more contagious variants continue to spread in the United States. Health officials in Virginia reported the first case of the strain first identified in South Africa on Friday. South Africa on Sunday halted distribution of the AstraZeneca vaccine due to its minimal efficacy against the strain first identified in the country.
In the United States, vaccine deployment continues. “Field boots are increasingly effective in distributing the vaccine, and the positive trial data has raised hopes that a third vaccine may soon be available for emergency use,” noted Ryan Detrick. , Chief Market Strategist for LPL Financial. “Obviously, as a greater proportion of the population receives their vaccines, economic activity may resume and hiring in hard-hit service jobs may resume.”
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