Trader Michael Urkonis works on the floor of the New York Stock Exchange, January 28, 2020.
Bryan R Smith | Reuters
US stock futures opened Sunday night flat after President Donald Trump signed several executive orders to extend coronavirus relief.
Dow Jones Industrial Average dipped just 22 points, as 0.1%. S&P 500 futures also slipped 0.1%, while Nasdaq 100 futures increased marginally.
Those orders continue with the distribution of extended unemployment benefits, postpone student loan payments through 2020, extend a federal moratorium on lending, and grant a tax break. However, the unemployment benefit will be continued at a reduced rate of $ 400 per week. Originally, the benefit provided workers by the pandemic with $ 600 per week.
Trump’s moves come after congressional leaders failed to make progress on a new coronavirus incentive package last week. Several benefits of a package signed earlier in the year vanished at the end of July, prompting uncertainty about the U.S. economy ahead.
“The fiscal cliff still represents downside risk for August,” said Aneta Markowska, chief financial officer at Jefferies. Markowska added, however, any weakness of this will be “short lived.”
“By September, another round of fiscal support will create positive momentum. The reopening of schools, even if only in some states, will strengthen the positive momentum by (1) encouraging overcrowding of schools and (2) allowing more parents to return to school. September after work, “she said in a note to clients. “Bottom line, all the stars are up for another building point in activity and a second leg up in the upside.”
Wall Street came off a strong performance of the week. The Dow rose 3.8% last week for its biggest weekly gain since June. The S&P 500 climbed 2.5% along with the Nasdaq Composite. Last week’s gains come at a historically difficult time for the market as August launches the worst three-month stretch for the S&P 500.
Those gains were led in part by Facebook, Apple and Microsoft, all of which went up by more than 3% last week. They left the S&P 500 just 1.2% below the February 19 high.
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