U.S. stock index futures rose during trading overnight on Wednesday as stocks appeared to rise with the momentum of February.
Dow-linked futures contracts gained 34 points, 0.09%. Futures S&P 500 and Nasdaq 100 rose 0.06% and 0.07%, respectively.
The move comes after the Dow advanced 63 points during regular trading hours to close at a record high. In a volatile session that saw the 30-share average oscillate between gains and losses, the Dow also hit its ninth intraday record of the year.
The S&P 500 and Nasdaq Composite also hit record highs during Wednesday’s session, but the indices were unable to maintain those gains. The S&P ended up closing 0.03% lower, while the Nasdaq fell 0.25%.
Federal Reserve Chairman Jerome Powell said Wednesday that the economy faces challenges in the labor market and therefore monetary policy must remain “patiently accommodating.” Speaking to the New York Economic Club, Powell said the job landscape is a “long way” from where it should be.
“Today Powell has stuck to his weapons,” said Ryan Detrick, LPL’s chief financial market strategist. “With many worried about over-stimulus and higher inflation, they are more concerned about a stubborn employment landscape. The truth is that there are low rates to stay in the foreseeable future and today’s speech is not he did nothing to change that, “he added.
For the week, the top three averages are higher and are on track to post their second consecutive positive week. Still earlier in the month, rates are also higher for February. The Russell 2000 continues to attract attention and the small capitalization index surpasses the S&P of the week, month and year so far.
In Washington, stimulus talks continue, and investors anticipate that any additional relief measures would support the shares.
“Markets anticipate pumping a lot of stimulus into the economy,” said Scott Wren, global market strategist at the Wells Fargo Investment Institute. “We believe additional incentives are needed to help the economy and consumers bridge the gap between when vaccines are administered more widely and blockages are removed,” he added.
Thursday will continue a very busy week of profits. PepsiCo, Kraft Heinz and Kellogg are among the names that will be presented before the market opens. Disney and Expedia will give their quarterly reports after the bell on Thursday.
According to a CNBC analysis, of the S&P 500 components that have so far reported gains, more than 80% have exceeded Wall Street expectations.
“As we move into February, we have states that are reopening, the virus is declining and vaccines are spreading rapidly. If we look back, we have decreased work, increased layoffs and lowered confidence,” said Brad McMillan, director of Commonwealth Financial Network investments.
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