US stock market futures index near the flatline on Monday, with the S&P 500 index set to open near record highs, but finding few reasons to trade higher amid a congressional speech on fresh incentives to help hurt Americans and businesses by of coronavirus-pandemic.
How do big indices work?
Futures for the Dow Jones Industrial Average YM00,
YMU20,
shares 58 points, or 0.2%, at 27,850, those for the S&P 500 index ES00,
ESU20,
were climbing 9.85 points to reach 3,371.25, a gain of 0.3%; Nasdaq-100 futures NQ00,
NQU20,
were 66.25 points, or 0.6%, at 11,200.50.
On Friday, the Dow DJIA,
received 1.8% for the week, the S&P 500 SPX,
posted a 0.6% advance of the week The Friday gain turned the Nasdaq Composite Index COMP,
barely positive for the week, up 0.1%.
What drives the market?
Market participants found a lack of catalysts for stocks to move to records a potentially bearish dynamic, heading into the growing part of the summer when trading volume tended to ease.
“The S&P 500 is not beating them all the time. Traders believe that if the price continues to consolidate here, it is likely that sentiment may become bearish, “Naeem Aslam, chief market analyst at AvaTrade, wrote in a note.
Movements for the stock market come amid failed negotiations between Democrats and Republicans centered on advancing a new package of aid to help workers affected by the COVID-19 pandemic, after $ 600 a week in unemployment benefits were stopped at the end of last month.
Investors are doubtful that a V-shaped recovery can be achieved without new support for those who are out of work, but the sluggish climb of the market also suggests that a bet is being made that an agreement will eventually be reached.
Meanwhile, the U.S. reported just over 42,000 new COVID-19 cases for Sunday, a sharp drop from Friday’s total of more than 64,000, according to data compiled by Johns Hopkins University. However, the nation’s total number of cases exceeded 5.4 million, about a quarter of the global total.
Elsewhere on Monday, New Zealand, where the outbreak has been largely controlled by the pandemic, delayed its elections by about a month after an outbreak in Auckland put a third of voters in lockdown.
Looking ahead, the market is awaiting a report on manufacturing in the state of New York, the Empire State Manufacturing Index, which arrives at 8:30 p.m. Eastern Time.
.
