Stock futures rose inches after S&P 500 marks another record close

Futures contracts related to major U.S. stock indexes rose early in the evening session on Wednesday evening, suggesting that Wall Street could extend gains that have pushed the S&P 500 to record levels this week.

Futures linked to the broad equity index rose about 0.1%, while Nasdaq 100 contracts added a similar 0.1%. Dow futures rose 20 points.

Movements in expanded trading came after the S&P 500’s last-day fall brought it to 4,079.95, a new closed high. The Dow Jones industrial average rose 16 points, or 0.1%, during the regular session.

The Nasdaq Composite, which has had a lot of technology, fell 0.1%, even when Big Tech shares outperformed. Amazon, Apple and Alphabet rose more than 1%, while Facebook jumped 2.2%.

Both the Dow record and the S&P 500 close on Monday.

Investors appeared pacified during Wednesday’s session by the latest minutes of the Fed meeting, which showed officials expect to keep pace with asset purchases for a while as the central bank works to support prices stable and maximum occupancy.

For Evercore ISI equity strategist Dennis DeBusschere, the market is not fully convinced that strong economic growth and inflation will not force the hand of the central bank before.

“The market predicts the Fed will have to raise rates before it says it will,” he said in an email. “The question is whether the Fed raises rates before inflation has exceeded 2% for some time.”

If they adhere to their plan, performance curves will intensify as growth prospects improve and the unemployment rate decreases, DeBusschere added. “It’s about RESULTS.”

President Joe Biden spoke Wednesday from Washington about his administration’s $ 2 trillion infrastructure plan, which includes raising the corporate tax rate to 28 percent, and said he was willing to negotiate. the proposed tax increase.

The proposed corporate tax increase is believed to be a key source of tax revenue for the White House infrastructure plan and is not a principle for Republicans, who say they are concerned about the increase in taxes as the US economy emerges from the Covid-19. pandemic.

Separately, the Treasury Department said Biden’s tax proposals would generate about $ 2.5 trillion in 15 years in an effort to pay for eight years of spending on roads, bridges, traffic, broadband and other projects.

Tax support is seen as the key driver of last month’s equity records and strong economic data, including a stronger-than-expected March jobs report. S&P 500, Dow Industrial and Nasdaq Composite are coming out of their fourth consecutive quarter of earnings as the economic recovery of the Covid-19 accelerates.

On Thursday, investors will discuss the Department of Labor’s latest update on the number of Americans applying for unemployment benefits for the first time. Economists surveyed by Dow Jones expect claims for the first time to reach 694,000 people during the week ended April 3rd.