U.S. stock futures moved significantly higher at the first trading session of the week, as the futures markets indicated a rebound from a losing week.
Stock traders and global investors are focusing on how effective the Covid-19 vaccine rollout is at the world’s largest economy, coupled with the lingering COVID-19 stimulus deal ongoing in the U.S Congress.
- At the time of writing this publication, Dow futures gained about 180 points. S&P 500 futures and Nasdaq 100 futures gained 0.55% and 0.45%, respectively.
- Last week was a bad week for U.S stocks; it recorded its first down week in several, as U.S fiscal officials continued a standoff surrounding a Covid-19 stimulus deal.
- At last week’s trading session, the S&P 500 dropped nearly 1%, for its first negative week in three. The Dow Jones Industrial Average lost about 0.57% for its first negative week in three and the Nasdaq Composite plunged by 0.7% for its first negative week in four.
Quick fact: American Stock futures are simply standardized contracts that global traders use in purchasing or selling the U.S stock at a future date. This means that the U.S stock futures give an insight into what global investors see before the market opens, or after it closes.
Stephen Innes, Chief Global Market Strategist at Axi, in a keynote to Nairametrics, spoke on the bearish results coming from the U.S stocks last week, coupled with the lingering U.S stimulus deal stalemate prevailing at U.S congress.
“US equities fell on Friday as the US stimulus impasse, no-deal Brexit concerns, and the omnipresent rolling lockdown holiday siege weighed heavy on investors’ minds.
“So it seems we could be stuck in the positive vaccine then negative Covid-19 feedback loop waiting for a stimulus check to arrive.
“In truth, the headlines on the US fiscal stimulus are all too familiar. But there is little sign of any movement in resolving divisions over the primary components. Squabbling continues over government aid to the states and COVID-19 liability protection for businesses,” Innes said.
What to expect: Given that these talks have been running since July, the U.S stock market may be bored in the near term, but if the stimulus door slams shut before Christmas, it could still change the positive vaccine music mood.