Traders on the floor of the New York Stock Exchange.
Source: NYSE
Futures U.S. stock markets rose in trading overnight and pointed to gains on Monday, continuing last week’s rally that led the Dow and S&P 500 to record highs.
Dow futures rose 70 points. The S&P 500 futures gained 0.15% and the Nasdaq 100 futures rose 0.05%.
Shares rose last week, with the Dow Jones industrial average rising 4% and the S&P 500 gaining 2.6%. The S&P 500 and Dow closed at record highs on Friday.
The Nasdaq Composite advanced 3% last week, despite Friday’s sell-off driven by rising interest rates. The jump in bond yields has challenged rising stocks in recent weeks and sent investors into cyclical market pockets. The Nasdaq has risen less than 1% this month, while the Dow and S&P have risen 6% and 3.5%, respectively.
The ten-year U.S. Treasury reached its highest level in more than a year on Friday. The benchmark cash rating reached 1.642%, its highest level since February 2020.
The Russell 2000 small-cap benchmark rose more than 7% last week as investors turned into smaller stocks benefiting from a strong economic recovery.
Last week, investors cheered on the $ 1.9 trillion stimulus package that President Joe Biden signed into law. The IRS began processing $ 1,400 in direct payments on Friday and checks began accessing bank accounts over the weekend. The bill will also involve about $ 20 billion in vaccinations against Covid-19 and $ 350 billion in state, local and tribal government aid.
Investors will prepare for the Federal Open Market Committee meeting on Tuesday and Wednesday, where the Federal Reserve will issue its decision on interest rates. Next week’s bond market will likely take its cues from the Federal Reserve.
The central bank is expected to recognize much better growth in the economy. Bond professionals are also monitoring whether Fed officials will adjust their interest rate prospects, which now do not include rate hikes until 2023.
Goldman Sachs chief economist David Kostin told customers on Sunday that he expects interest rates to continue to rise in the coming months and that investors will have to “continually fight anxiety over economic overheating and Fed tightening “.
As for the vaccine, Biden announced last week that it would run the states so that all adults could be eligible for the vaccine before May 1st. celebrates the fourth of July.