Dow futures soar 150 factors as shares attempt to bounce again from misplaced week
Traders work on the trading floor of the New York Stock Exchange.
US stock futures rose overnight on Sunday as markets indicated a rebound from a lost week.
Investors ponder updates on the Covid-19 vaccine launch as well as the coronavirus stimulus stalemate in Washington.
Dow futures rose 180 points. S&P 500 futures and Nasdaq 100 futures gained 0.55% and 0.45%, respectively.
Last week, stocks saw their first week of declines in several years as lawmakers continued a stalemate over a Covid-19 bailout package.
The S&P 500 fell nearly 1% in its first negative week in three years. The Dow Jones Industrial Average lost 0.57% for its first negative week in three and the Nasdaq Composite lost nearly 0.7% for its first negative week in four.
Next week is expected to be market-moving with the launch of the Pfizer vaccine and a Federal Reserve policy meeting. Tesla is also joining the S&P 500 on Friday.
Following the FDA’s emergency approval for Pfizer’s vaccine, CDC Director Robert Redfield de-registered the drug so that vaccinations can be officially administered to people aged 16 and over.
The US has started shipping the cans from a Pfizer facility in Michigan to hundreds of distribution centers around the country. The FDA is expected to release its assessment of Moderna’s vaccine this week.
The Covid-19 vaccine launches on some of the darkest days of the pandemic in the United States. More than 2,300 coronavirus-related deaths were recorded on Saturday, after over 3,300 deaths on Friday. New infections keep exploding. More than 219,000 cases were reported on Saturday.
The spike in cases coincides with months of debates in Washington over another round of Covid relief. A non-partisan group has proposed a $ 908 billion limit. Sen. Majority Leader Mitch McConnell has opposed the proposal, instead calling for an agreement that excludes corporate liability and funding provisions from state and local governments. These two issues are major sources of disagreement between Republicans and Democrats.
“Politically, the debate continues on more tax legislation that is badly needed for much of the population, but will also create an even bigger ‘wall of money’ for consumers when the economies are fully reopened,” said Raymond James’ Tavis McCourt towards customers on Sunday.
“It is very clear that the economy is slowing as the local stalemate persists, but the impact on the stock market has so far been limited. Whether this will continue through Q1 is unclear, but we expect withdrawals to be limited unless the vaccine changes significantly. ” History, “he added.
The Fed kicks off its two-day meeting on Tuesday, the last central bank meeting in 2020. Economists have speculated that the Fed might make changes to its bond program. The Fed is currently buying at least $ 80 billion a month from Treasuries, and Fed officials at their last meeting discussed what they could do to change that program.
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