Traders on the floor of the New York Stock Exchange.
Source: New York Stock Exchange
Stock futures stabilized Thursday after overnight trading, after Treasury Secretary Janet Yellen said a large Covid relief package is still needed for a full recovery in the US
Dow Jones industrial average futures fell just 15 points. The S&P 500 and Nasdaq 100 futures are trading slightly lower.
Yellen told CNBC Thursday after the bell that more stimuli are needed, though some economic data suggests a quick rebound. He added that a $ 1.9 trillion stimulus deal could help the United States regain full employment in a year.
“We think it ‘s very important to have a great package [that] addresses the pain this has caused: 15 million Americans with their rent, 24 million adults and 12 million children who do not have enough food, small businesses fail, ”Yellen told CNBC’s Sara Eisen during a interview with “Closing Bell”.
“I think the price of doing too little is much higher than doing something big. We believe the benefits will far outweigh the long-term costs,” he added.
The recovery in stock market records appears to have faded as fears of rising rates and higher inflation arose. The S&P 500 fell for the third day in a row on Thursday after a worse-than-expected reading on Walmart’s unemployment claims and weak guidance.
Many on Wall Street believe that in order for the market to expand, the expectations of new fiscal stimulus and a smooth reopening must come true.
“Much of our reason for making additional profits here depends on the continued belief that the major engines that helped bring the market to current levels will remain intact,” Scott Wren, chief market strategist, said in a note. Wells Fargo World Cup. One of the engines is “the additional stimulus from Congress that will help bridge the gap between now and then when vaccines are widely distributed.”
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