U.S. stock index futures rose in trading on Sunday overnight as major averages appeared to accelerate gains after the best week since November.
Dow-linked futures contracts gained 75 points, 0.27%. The S&P 500 futures rose 0.3%, while the Nasdaq 100 futures rose 0.33%.
The S&P 500 closed the record high on Friday and posted its fifth consecutive positive session for the first time since August. The Dow also has the longest daily winning streak since August, while the Nasdaq Composite recorded its fourth positive session in five Fridays. The heavy technology index also closed at a record high.
“We’re still very much in a bullish market in the early stages of an economic recovery that is gaining momentum,” Michael Wilson, Morgan Stanley’s chief U.S. equity strategist, said on Sunday. “We continue to recommend actions with more benefits to improve the economic context as vaccines are distributed and normal activities are resumed,” he added.
The top three averages ended the week in the green, and each posted its best week since November, as fears were reduced to a short handful of stocks that sparked a wider market contagion. The Russell 2000, meanwhile, has the longest daily winning streak since May and gained 7.7% last week for its best weekly performance since June.
“Equity stocks continue to grow and are likely to be reaching the 4000 level for the S&P 500,” said JC O’Hara, chief market technician at MKM Partners. “Trends remain positive … The severity of the upward slope should continue to attract fast money, but in the long run, patients’ money will remain on the sidelines until a setback occurs,” he added.
The Senate and House passed a budget resolution on Friday, initiating the reconciliation process that would allow President Joe Biden’s $ 1.9 trillion bailout package to go through the Senate of Democracy with a simple majority.
The package includes $ 1,400 stimulus control, additional unemployment benefits and funds for the Covid-19 vaccine and test.
Treasury Secretary Janet Yellen said Sunday that if the Biden stimulus plan is approved, the United States could return to full employment in 2022.
“There’s absolutely no reason why we should suffer a slow, long recovery,” Yellen said during an interview with CNN’s “State of the Union”. “I would expect that if this package is approved, we will return to full employment next year.”
Meanwhile, there is another busy earnings week on the deck, with 78 S&P 500 components reporting quarterly results. Deck names include Cisco, Twitter, Yelp, Uber, MGM, Mattel, GM, Coca-Cola and Disney.
On the coronavirus front, the most contagious variants continue to spread across the United States Friday Virginia health officials reported the first state case of the strain first identified in South Africa. On Sunday, South Africa halted distribution of the AstraZeneca vaccine given its minimal effectiveness against the strain first identified in the country.
In the United States, the implementation of vaccines continues. “Boots on the ground are becoming more efficient in vaccine distribution and positive trial data raised hopes that a third vaccine will soon be available for emergency use,” said Ryan Detrick, market strategist principal of LPL Financial. “Viously, obviously, as a larger proportion of the population receives vaccines, economic activity can resume and hiring for severely affected service jobs can resume.”
Subscribe to CNBC PRO for exclusive information and analysis and live scheduling of weekdays from around the world.