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Home / Business / Wall Street closed at a record high. After the end of last week, stock futures were flat

Wall Street closed at a record high. After the end of last week, stock futures were flat



Traders work on the New York Stock Exchange.

New York Stock Exchange

As investors assessed the prospects of more Covid-19 relief measures, stock futures in overnight trading on Sunday remained stable.

The Dow Jones Industrial Average futures fell only 20 points. S&P 500 futures and Nasdaq 1

00 are almost unchanged.

Beginning in 2021, the stock market has performed steadily. Investors have avoided the fierce siege of the Capitol and focused on further fiscal stimulus packages after the Democratic Party swept the Congress. The S&P 500 index climbed to a record high for four consecutive days, rising 1.8% last week. The Dow Jones Index and the high-tech Nasdaq Composite Index rose 1.6% and 2.4% respectively in the previous week, and also hit a record high.

Adam Crisafulli of Vital Knowledge said in a report on Sunday: “This progress is based on three main pillars: strong company earnings, massive stimulus measures and optimism about vaccines.” Expectations for stimulus are getting higher and higher. Biden’s plan may be worth several trillion dollars on paper, but the actual pass may be much smaller.”

President-elect Biden promised to launch a substantial economic stimulus policy on Friday. He said it would be “in the trillions of dollars.” More details will be officially announced on Thursday, six days before he takes office.

Unexpected unemployment in December led people to emphasize the need for further stimulus measures. The Labor Department reported on Friday that non-agricultural employment has fallen by 140,000 due to new lockdown restrictions that have hit industries sensitive to the virus. This is the first monthly decline since April.

Political turmoil should continue this week, and it remains to be seen when or whether it will be affected. With the support of some Republicans, the Democrats are beginning to initiate impeachment proceedings against President Donald Trump in the House of Representatives this week to incite mob attacks. The House of Representatives Committee is expected to expedite the impeachment proceedings without the committee’s hearing or voting.

For the current market, because Congress can successfully confirm Biden’s election victory, the Democrats currently in the Senate are likely to take another major stimulus. If these events start to delay or disrupt those stimulus plans, then traders may begin to pay more attention.

Some on Wall Street believe that the market will see a correction, especially after 2020 is unexpectedly strong. The S&P 500 Index rose 16.3% last year.

Matt Maley, chief market strategist at Miller Tabak, said in a report on Sunday: “After a few months of bullishness, we will definitely be cautious on the stock market at these levels. “We believe that most of the rebound since the March low is behind us…and the correction may begin sometime in the first quarter of this year.”

Last week, the benchmark 10-year U.S. Treasury bond yield exceeded 1% for the first time since the turmoil triggered by the March pandemic.

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