U.S. Senate Majority Leader Mitch McConnell speaks during a press conference with other Senate Republicans at the U.S. Capitol in Washington, DC, on December 15, 2020.
Tom Brenner | AFP | Getty Images
Stock futures rose on Sunday night trading as Congress managed to seal a coronavirus stimulus deal hours before the halt.
Futures above the Dow Jones industrial average gained 100 points. S&P 500 futures rose slightly and Nasdaq 100 futures rose 0.2%. At Monday’s opening, Tesla will enter the S&P 500 with an index weighting of 1.69%, the fifth largest.
Senate Majority Leader Mitch McConnell said lawmakers have reached an agreement on a $ 900 billion relief package that would provide direct payments and jobless assistance to troubled Americans. The announcement came after negotiators resolved a key point to restrict the Federal Reserve’s emergency lending powers.
To avoid a government shutdown that would begin at 12:01 a.m. ET Monday, Congress wants to pass a one-day spending measure on Sunday. Lawmakers will then vote on the aid and funding bill on Monday.
Major averages have recently risen to record highs amid optimism toward new coronavirus stimulation as well as vaccine deployment. Modern sends its first batch of vaccine doses after receiving approval for emergency use from the FDA. Meanwhile, Pfizer and BioNTech vaccines are being distributed to front-line healthcare workers across the country.
“In the eyes of stocks, the inexorable vaccination process, which is just beginning, is more powerful than current trends in cases and blockages, and this will prevent markets from delving too deep into a pandemic despair pit,” said Adam Crisafulli , said Sunday in a note, founder of Vital Knowledge.
“Remember, the three pillars of the rally remain very established: vaccines, strong business gains and massive incentives,” he added.
With only two trading weeks left until 2020, the S&P 500 rose 14.8% for the year, while the 30-share Dow rose 5.8%. The Nasdaq Composite has risen 42.2% this year as investors favored high-tech companies.
On Friday, the Fed announced that it will allow the country’s major banks to resume share repurchase in the first quarter of 2021, subject to certain rules.
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