US stock market futures rose slightly on Tuesday, indicating that the main benchmark index may continue its gains the day after the record closed.
Futures linked to the Standard & Poor’s 500 Index and the Dow Jones Industrial Average rose 0.5%. Both indexes hit record highs on Monday. The Nasdaq 100 index contract also rose 0.5%, indicating that technology stocks will also rise.
In the last few days of the year, the stock market moved higher, partly because central banks and governments released cheap funds to protect the global economy from the effects of the coronavirus pandemic. The Standard & Poor’s 500 index has risen by more than 15% this year. On the basis of the 29% rise in 2019, the Nasdaq Composite Index has risen by more than 43% in 2020 alone.
“Some people have been robbed of the competition. Market momentum is pushing and surpassing these record highs,”
“They are fictitious thresholds, but benchmarks can live their lives, and this is happening.”
Usually, in the last few days of the year, many people are on vacation and trading volume will decrease, which may amplify market trends.
After the House of Representatives approved a bill on Monday to increase the size of stimulus checks from $600 to $2,000, investor sentiment has also been boosted. This measure now goes to the Senate, whose fate is uncertain. Senate Majority Leader Mitch McConnell (R., K.) has not yet commented on whether to accept the bill.
“The market does not necessarily take potential growth for granted, but the possibility of raising interest rates is pleased. Mr. Brzeski said.
The Wall Street Journal Dollar Index, which tracks the exchange rate of the U.S. dollar against other currencies, fell 0.3%, its lowest level in more than a week.
In the bond market, the yield on the benchmark 10-year US Treasury bond rose to 0.941% from 0.932% on Monday.
At the same time, as the hospitalization rate in the United States soared to a new high on Monday, the coronavirus pandemic continued to intensify. The intensive care unit is also under pressure.
Robeco multi-asset head Jeroen Blokland said: “The lockdown, the spread of the virus and the combination of new viruses, but investors are still highlighting the positive news related to this.”
In premarket trading, Snap rose more than 3% after analysts at Goldman Sachs raised the price target for Snapchat app developers.
Overseas, the pan-European Stoxx Europe 600 rose 0.9%.
In the UK, where the market reopened on Tuesday, the main FTSE 100 index rose 2% as investors were encouraged by trading after Brexit on Christmas Eve. British and EU officials reached an agreement that included a free trade agreement, ending four years of uncertainty.
“The Brexit deal will help risk sentiment. Since investors returned to the office for the first time since Christmas, people are investigating the details of the transaction.” said James Athey, investment manager at Aberdeen Standard Investments.
In European stock markets, AstraZeneca rose nearly 4% due to reports that the pharmaceutical company’s Covid-19 vaccine may be approved by the British government in the next few days.
Bank of England is one of the worst performing banks, with Lloyds Banking Group down nearly 4%, Barclays down about 3% and NatWest Group down 2.7%. It is not clear how the Brexit deal will affect financial services.
In Asia, most major benchmarks were rising at the close. Japan’s Nikkei 225 index rose 2.7% to close at a 30-day high. Hong Kong’s Hang Seng Index rose 1%, and the Shanghai Composite Index fell slightly by 0.5%.
Brockland said: “The momentum of Asian stock markets shows that the entire vaccine-driven rebound is going global.” “For 2021, we are quite optimistic. We do believe that the economic recovery will [the first quarter] American stimulus measures will help. “
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