Stock futures are flat amid turmoil at U.S. Capitol
US stock futures were flat overnight on Wednesday as investors digested the likely event of a Democratic congress and further shook off the turmoil in the US Capitol.
The Dow Jones Industrial average futures rose 8 points. S&P 500 futures gained 0.15% and Nasdaq 100 futures gained 0.38%.
Markets were largely untouched by the chaos in Washington on Wednesday caused by pro-Trump rioters in the U.S. Capitol. Legislators had just begun the process of counting the electoral college’s votes and officially declaring President-elect Joe Biden the winner when demonstrators stormed the chamber.
US officials said later Wednesday night the Capitol was secured after the evacuation of the protesters. Vice President’s press secretary Mike Pence said Pence and the Senators are determined to meet again until the votes are counted.
“The country’s strength is our institutions and our laws,” QMA’s Ed Keon told CNBC. “It’s daunting to see that, but we’ll prevail and I think that’s the message from the markets.”
“I think the reason the markets aren’t too cluttered is because it won’t change the power shift,” added Tom Lee, co-founder of Fundstrat Global Advisors.
US stocks rose on Wednesday as the Georgian Senate election results arrived. Minutes after the closing bell, NBC predicted that Democrat Jon Ossoff would defeat Republican David Perdue. This comes after NBC earlier projected that Democrat Raphael Warnock defeated Republican Senator Kelly Loeffler in their runoff election.
The Georgian election results create a 50:50 Senate that the Democrats will control due to the groundbreaking vote in elected Vice President Kamala Harris. A Democrat-held Senate is widely expected to push for a more robust stimulus package, speculation that boosted stocks on Wednesday.
The Dow Jones Industrial Average rose more than 400 points, or 1.4%, to close at a record high. The S&P 500 rose 0.57%, hitting an intraday all-time high during the session. The two averages, however, closed their highs amid the unrest.
The Nasdaq Composite was the relative underperformer, down 0.6% as Facebook, Amazon, Apple, Netflix, and the Google parent alphabet all closed lower.
The Russell 2000 small-cap benchmark rose nearly 4%, beating the 2,050 level in hopes of more housekeeping.
The 10-year government bond yield surged above 1% for the first time since the pandemic-triggered loss in March late Tuesday. The jump in yield triggered a rally in bank stocks on Wednesday.
In the midst of the chaos, the cryptocurrency Bitcoin topped $ 36,000.
The Ministry of Labor publishes last week’s unemployment claims at 8:30 a.m. on Thursday. Economists polled by Dow Jones expect 815,000 Americans to file for unemployment last week, compared to 787,000 claims the previous week.
Bed Bath & Beyond, Constellation Brands, Walgreens Boots Alliance and Conagra will report quarterly results on Thursday before the bell. Chipmaker Micron reports after the bell.
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