Stock futures rise in overnight trading after Yellen pushes for further impulses
Traders on the floor of the New York Stock Exchange.
Source: The New York Stock Exchange
Stock futures rose sharply in overnight trading Thursday after Treasury Secretary Janet Yellen said a major Covid bailout is still needed for a full US recovery
Futures on the Dow Jones Industrial Average gained 20 points. S&P 500 futures and Nasdaq 100 futures both traded slightly higher.
Yellen told CNBC on Thursday after the bell that further stimulus was needed, although some economic data suggested a rapid rebound. She added that a $ 1.9 trillion economic agreement could help the US get back to full employment in a year.
“We think it’s very important to have a big package [that] addresses the pain this has caused – 15 million Americans are behind on their rent, 24 million adults and 12 million children who don’t have enough to eat, small businesses fail, “said Yellen Sara Eisen of CNBC during a” Closing Bell “interviews.
“I think the price of too little is much higher than the price of something big. We believe the benefits will far outweigh the costs in the long run,” she added.
The record rally in the stock markets appears to have stalled as fears of rising interest rates and higher inflation crept in. The S&P 500 fell for a third straight day on Thursday after Walmart worsened jobless claims and poorly forecast Walmart’s outlook.
Many on Wall Street believe that expectations of more fiscal stimulus and a smooth reopening must become a reality for the market to extend its march upward.
“Much of our deliberations for additional profit from here depends on an ongoing belief that the key drivers that helped bring the market up to date remain intact,” said Scott Wren, Wells Fargo’s leading global market strategist in a note. One of the drivers is “an additional incentive from Congress that will help bridge the gap between now and the spread of vaccines”.
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