Inventory futures barely modified as Congress prepares to vote on a stimulus settlement
U.S. stock futures were unchanged on Monday night after a volatile day on Wall Street with the Dow Jones Industrial Average wiping out a 400-point deficit.
Dow-linked futures contracts fell about 40 points, or 0.1%, and those that the S&P 500 lost lost a similar amount. Futures on the Nasdaq 100 rose 0.1%.
The move into the future came as the leaders of Congress in Washington steered towards the adoption of a $ 900 billion package of economic aid. An agreement was reached on Sunday evening, but the text of the final contract was not released until Monday afternoon. A vote is expected on Monday evening.
During Monday’s regular market hours, stocks opened significantly lower amid concerns about a new variant of Covid-19 in the UK. Many European countries have introduced travel restrictions for visitors from the UK, and New York Governor Andrew Cuomo urged the United States to take similar steps.
However, many experts, including those from the World Health Organization, said Monday that Pfizer and Moderna’s coronavirus vaccines would likely be effective against the new variant and that Covid mutated more slowly than the seasonal flu.
The Dow finished the race up 37 points, partly due to strong performance in bank stocks. The S&P 500, Nasdaq Composite, and stocks linked to the travel industry have left their session lows well behind.
Jonathan Golub, chief US equity strategist at Credit Suisse, told Closing Bell that he expected the economy and markets to continue cooling in the coming months before consumer spending rose in mid-2021.
“I don’t think there is a smooth, simple, straightforward story,” said Golub. “I think for the next three or four months the reopening process is going to be sloppy.”
Monday was also the first day of trading that Tesla was a member of the S&P 500. The electric vehicle population lost 6.5%. Part of that loss came after Reuters reported that Apple was targeting 2024 as the date for the launch of its own passenger car.
Turning to economic data, investors will receive new information on consumer confidence and existing home sales on Tuesday.
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