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Home / Business / As Wall Street awaits clarification from Washington, stock futures have hardly changed

As Wall Street awaits clarification from Washington, stock futures have hardly changed



US stock index futures were almost unchanged in overnight trading on Tuesday, after seeing stocks alternate between rising and falling on the previous trading day.

The futures contract linked to the Dow Jones Industrial Average fell 20 points. S&P 500 futures and Nasdaq 100 futures both fell 0.09%.

As traders digested higher interest rates, possible other stimulus measures and political turmoil, the stock market closed almost unchanged on Tuesday.

The Dow Jones Industrial Average rose 60 points, or 0.2%, to 31

,068.69. The Nasdaq Composite Index closed up 0.3%, and the Standard & Poor’s 500 Index rose slightly to 3,801.19. At the same time, the yield on the benchmark 10-year Treasury note briefly traded at 1.18%, the highest level since March.

In view of the upward trend, Credit Suisse recommends that investors favor procyclical industries, including the financial and energy industries. However, rising interest rates may hurt growth stocks, and many technology giants, including Facebook and Apple, fell in Tuesday’s trading.

The expectation of additional fiscal stimulus is one of the reasons for the steady rise in yields. President-elect Biden expects details of his economic plan to be released on Thursday.

Jason Draho, head of UBS’s global wealth management department, said: “There is at least a $500 billion fiscal plan that includes additional stimulus checks, extended unemployment benefits, and use of healthcare and vaccines. The funds paid will once again promote economic growth in 2021.” Asset allocation.

After the market was closed on Tuesday, the main average prices remained low during the week following Monday’s decline. The Nasdaq Composite Index underperformed, falling about 1% in the past two trading days. Small caps are a bright spot, with the Russell 2000 index up 1.7% so far this week.

As the turmoil in Washington continued, these moves came. The Democratic-controlled House of Representatives will vote on a resolution on Tuesday night that calls on Vice President Mike Pence and the cabinet to invoke the 25th Amendment to drive Trump out of the White House.

In the United States and abroad, Covid cases also continue to increase. According to the 7-day average calculated by CNBC based on data from Johns Hopkins University, the United States records at least 248,650 new Covid-19 cases and at least 3,223 virus-related deaths every day.

However, many people say that the United States is expected to resume growth later this year.

Brent Schutte, chief investment strategist at Northwest Common Wealth Management, said: “By 2021, the U.S. economy should be stimulated by additional fiscal and monetary stimulus measures, while also ending the pandemic’s impact on the economy. “Impact.” He added: “The rising demand in industries affected by COVID-19 and the required inventory rebuilding should further stimulate job growth.”

All in all, Shute said that this laid the foundation for above-average economic growth, and he believes that the stock market will climb to new highs.

-Jacob Pramuk of CNBC provided the report.

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