U.S. stock futures rise slightly after Monday’s record-setting jump
US stock futures rose slightly on Monday evening after the rally pushed key averages to new record highs.
Dow Jones Industrial Average futures traded 92 points, or 0.3%. S&P 500 and Nasdaq 100 futures gained 0.3% and 0.2%, respectively.
Earlier in the day, the Dow rose 204 points, or 0.7%, while the S&P 500 and Nasdaq Composite rose 0.9% and 0.7%, respectively.
Those gains came after President Donald Trump signed a $ 900 billion coronavirus aid package. The measure involves a direct payment of $ 600 to most Americans. The signing came days after Trump requested a direct payment of $ 2,000. The House passed bill to increase direct payments to $ 2,000, but the GOP-led Senate is unlikely to pass the measure.
“The combination of vaccine launches, fiscal stimulus and simple monetary policy continue to create a positive backdrop for stocks through 2021,” wrote Mark Haefele, chief investment officer at UBS Global Wealth Management. “The agreement on a new stimulus package for the US removes the most recent hurdle, and global central banks continue to support the recovery by maintaining (and expanding) monetary provisions.”
Monday’s rally drove the S&P 500 up 15.6% over the year and the Dow 6.5% over the period. The Nasdaq Composite is up more than 43% in 2020 as investors flocked to big tech names like Apple, Amazon, and Facebook.
However, the number of coronavirus cases in the US continues to rise, raising doubts about the economic recovery in the new year. Last week, at least 184,000 new infections per day were reported in the United States, according to a CNBC analysis of Johns Hopkins University data.
“Vaccine distribution has now officially started … but the pandemic has reached proportions on several fronts,” wrote Jason Pride, CIO for personal wealth at Glenmede.
“The virus resurgence has led to lockdown measures nationwide and slowed economic reopening efforts. If virus spread is not brought under control by the end of the year, this will likely be a key initiative to do so in early 2021, before a vaccine widely spread is distributed, “added Pride.
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