U.S. Stock futures corrected on Tuesday, suggesting a day after major benchmark records closed could extend their rally.
Futures tied with the S&P 500 and the Dow Jones Industrial Average rose nearly 0.4%. Both indices closed at an all-time high on Monday. Contracts on the Nasdaq-100 index rose 0.4%, indicating that technology stocks will also benefit.
In the last days of the year stocks are favoring the power of power, with the central banks and governments splitting the global economy with cheap money to save it from the coronavirus epidemic. The S&P 500 index has risen more than 15% this year, based on its 29% growth in 2019, while the Nasdaq Composite Index has risen more than 43% in 2020 alone.
“Some people are taking part in record races. Carsten Brzezinski, global head of macro research at ING Group, said the pace of the market is pushing this record high and moving forward..
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“They are imaginary thresholds, but the benchmark can live its life and is coming now.”
Trading volume is also generally thinner on the last days of the year with many people on vacation, which increases potential market moves.
The House voted Monday to increase federal direct payments to $ 2,000, paving the way for consideration of a bill proposed by the Senate.
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Leah Mills / Reuters
Investor sentiment also rose on Monday after the House approved a bill to increase the size of the stimulus check from $ 600 to 2,000. The move now leads to the Senate where its fate is uncertain. Senate Majority Leader Mitch McConnell (R., Q.) has not commented on whether to take the bill.
“Markets are not given the necessary potential growth, but there is optimism about the potential to move forward. “Partly ly is being priced,” Mr Brzezinski said.
The WSJ Dow Jones Index, which tracks US currencies against a basket of others, has fallen 0.3% in one week.
In bond markets, the benchmark 10-year Treasury yield rose 0.932% to 0.946% on Monday.
Meanwhile, the coronavirus epidemic is in full swing in the US as people reach a new high with hospital admissions on Monday. Intensive care units are also coming under pressure.
“There’s this mix of lockdowns, virus outbreaks and new strains, but investors are still emphasizing the positive news flow on this,” said Jeroen Blakeland, Multiset head at Robeco.
In pre-market trading, Snap rose more than 3.5% after Goldman Sachs raised its price target on the developer of the Snapchat app.
Overseas, pan-continental stocks rose 0.8% in the Europe 600.
In the UK, where markets reopened on Tuesday, the main benchmark of FTSE 100 stocks rose 2% as investors cheered on post-Brexit deals on Christmas Eve. British and European Union officials reached an agreement that included a free trade agreement, ending four years of uncertainty.
“The Brexit deal will help in the sense of risk. Since investors are returning to office for the first time since Christmas, people are paying close attention to the details of the deal, “said James Athe, investment manager at Berdein Standard Investments.
In European equities, AstraZeneca jumped nearly 4% on reports that the pharmaceutical company’s Covid-19 vaccine could be approved by the UK government in the coming days.
British banks were among the worst performers, with Lloyds Banking Group down nearly 4%, Barclays 2.5% and NatWest Group 3%. It is not entirely clear how the Brexit deal will affect financial services.
In Asia, most of the big benchmarks were tumbled by the end of trading. Japan’s Nikkei 225 index rose 2.7% to a 30-year high. Hong Kong’s Hang Seng Index rose 1%, while the Shanghai Composite Index was down 0.5%.
“The momentum in Asian stocks shows that this whole vaccine-induced rally is coming globally,” Mr. A. Blast Cland said. “For 2021, we are very bullish, we think economic recovery will resume [the first quarter] And U.S. Will help increase arousal. “
Write to Anna Hirtenstein at [email protected]
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