A trader on the floor of the New York Stock Exchange.
Source: NYSE
U.S. futures were largely flat on Wednesday evening after the blue market average set another record during normal trading hours.
Dow Jones Industrial Average futures traded up 38 points, or 0.1%. Those on the S&P 500 rose 0.1% more, while futures on the Nasdaq 100 changed little.
The move in futures came after the Dow jumped 464 points to a record that closed on Wednesday. The S&P 500 rose 0.6%, while the Nasdaq Composite fell slightly as growth stocks resumed.
Wednesday’s gains came as the House approved the $ 1.9 trillion stimulus package, which it sent to President Joe Biden, and as the bond market digested a 10-year Treasury bond auction. of $ 38 billion without an increase in volatility.
Rising interest rates accelerated the rotation of technology and growth stocks in recent weeks and into more cyclical sectors, such as energy. Higher rates make profits in distant years seem less attractive to investors and can bring down stocks with relatively high valuations.
“The faster-than-expected acceleration in U.S. economic growth appears to increase inflation and long-term interest rates,” Gary Schlossberg of the Wells Fargo Investment Institute said in a note. “The pace of these increases has been a recent concern for investors, but the recovery in interest rates and inflation is a typical incidence at the start of a recovery, faster this time, in our view, due to of the rise in unusually strong economic growth. “
This week has been stronger for growth stocks overall, however, as the Nasdaq rise pulled the correction territory index on Tuesday. The Invesco QQQ Trust, which tracks the Nasdaq 100, has risen slightly this week after falling the previous three weeks.
As for the data, investors will receive two new readings on the labor market recovery on Thursday. The initial number of last week’s unemployment claims will be posted at 8:30 a.m. ET, with economists surveyed by Dow Jones expecting 725,000 new claims. The January job opening and labor rotation survey will arrive later in the morning.