Traders on the floor of the New York Stock Exchange.
Source: NYSE
US equities futures rose higher in overnight trading and opened on Monday, continuing last week’s that saw the Dow and S&P 500 reach a record high.
Dow futures rose 70 points. S&P 500 futures rose 0.15% and Nasdaq 100 futures rose 0.05%.
Shares rose last week with the Dow Jones industrial average rising 4% and the S&P 500 rising 2.6%. The S&P 500 and the Dow both closed at record highs on Friday.
The Nasdaq Composite rose 3% last week, despite a sell-off on Friday spurred by rising interest rates. The rise in bond yields has challenged growth stocks over the past few weeks, sending investors into the cyclical pockets of the market. The Nasdaq rose less than 1% this month, while the Dow and S&P rose 6% and 3.5% respectively.
The U.S. Treasury for ten years reached its highest level in more than a year on Friday. The standard treasury note reached 1.642%, the highest level since February 2020.
The benchmark for small-cap Russell 2000 rose more than 7% last week as investors switched to smaller equities benefiting from a sharp economic return.
Last week, investors applauded the $ 1.9 billion stimulus package signed by President Joe Biden. The IRS began processing $ 1,400 direct payments on Friday and checks began hitting bank accounts over the weekend. The bill will also provide nearly $ 20 billion in Covid-19 vaccinations and $ 350 billion in state, local and tribal government assistance.
Investors are preparing for Tuesday and Wednesday’s Federal Public Market Committee meeting where the Federal Reserve will deliver its interest rate decision. The bond market in the coming week is likely to make use of the Federal Reserve.
The central bank is expected to recognize much better growth in the economy. Bond experts are also looking at whether Fed officials will adjust their interest rate outlook, which now does not include any interest rate hikes until 2023.
Goldman Sachs chief economist David Kostin told clients on Sunday that he expects interest rates to continue to rise in the coming months, and that investors will have to “constantly struggle with the anxiety about economic overheating and the strengthening of the Fed”.
As for the vaccine, Biden announced last week that it would order countries to qualify for the vaccine by May 1. Biden also set a goal that Americans could meet in person with their friends and loved ones in small groups on the fourth of July.