Traders on the floor of the New York Stock Exchange.
Source: The New York Stock Exchange
Equity futures traded overnight on Thursday after Finance Minister Janet Yellen said a major Covid relief package is still needed for a full recovery in the US.
The futures market on the Dow Jones industrial average fell just 15 points. S&P 500 futures and Nasdaq 100 futures both traded slightly lower.
Yellen told CNBC on Thursday after the clock that more stimulus is needed, even though some economic data is a rapid setback. She added that a $ 1.9 billion stimulus deal could help the US return to full service within a year.
‘We think it’s very important to have a great package [that] addresses the pain it caused – 15 million Americans behind on their rent, 24 million adults and 12 million children not having enough to eat, small businesses have failed, “Yellen told CNBC’s Sara Eisen during a “Closing Bell” interview.
“I think the price of doing too little is much higher than the price of doing something great. We think the long-term benefits will outweigh the costs,” she added.
The increase in the stock market seems to have faded as fears of rising rates and higher inflation have crept in. The S&P 500 fell for a third consecutive day on Thursday after a worse-than-expected reading on jobless claims, as well as poor lead from Walmart. .
Many people on Wall Street believe that the expectations for further fiscal stimulus and a smooth reopening should materialize to make the market stretch its march higher.
“Much of our reason for additional profits from here depends on the firm belief that the key drivers that have helped carry the market to its current level will remain intact,” said Scott Wren, senior world strategist at Wells Fargo. said in a note. One of the drivers is an additional stimulus from Congress that will help bridge the gap between now and until the distribution of vaccines. ‘
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