Traders on the floor of the New York Stock Exchange.
Source: The New York Stock Exchange
Stock futures were slightly higher early Friday after Treasury Secretary Janet Yellen said a major Covid bailout was still needed for a full US recovery
Dow Jones Industrial Average futures implied an opening profit of around 55 points. S&P 500 futures traded near the flatline while Nasdaq 100 futures were slightly higher.
Yellen told CNBC on Thursday after the bell that further stimulus was needed, although some economic data suggested a rapid rebound. She added that a $ 1.9 trillion economic agreement could help the US get back to full employment in a year.
“We think it’s very important to have a big package [that] addresses the pain this has caused – 15 million Americans are behind on their rent, 24 million adults and 12 million children who don’t have enough to eat, small businesses fail, “said Yellen Sara Eisen of CNBC during a” Closing Bell “interviews.
“I think the price of too little is much higher than the price of something big. We believe the benefits will far outweigh the costs in the long run,” she added.
The record rally in the equity markets appears to have stalled amid fears of rising interest rates and higher inflation creeping in. The S&P 500 fell for a third straight day on Thursday after Walmart made jobless claims worse-than-expected and poorly rated Walmart’s forecasts.
Many on Wall Street believe that expectations of more fiscal stimulus and a smooth reopening must become a reality for the market to extend its march upward.
“Much of our deliberations for additional profit from here rests on an ongoing belief that the key drivers that helped bring the market up to date remain intact,” said Scott Wren, Wells Fargo’s leading global market strategist. in a note. One of the drivers is “an additional incentive from Congress that will help bridge the gap between now and the spread of vaccines”.
The S&P 500 and Nasdaq Composite are down 0.5% and 1.6% respectively this week to break their two-week winning streak. The blue chip Dow has only risen 0.1% for weeks.
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