Equity futures contract inches higher after S&P 500 breaks another record

Forward contracts linked to major US stock indices ticked higher at the start of the overnight session on Wednesday night, suggesting that Wall Street could increase profits which pushed the S&P 500 to record levels this week.

Forward contracts on the broad stock index rose 0.1%, while Nasdaq 100 contracts added a similar 0.1%. Dow futures rose 20 points.

The movements in extended trading took place after a late afternoon in the S&P 500 pushed it to 4 079.95, a new high. The Dow Jones industrial average rose 16 points, or 0.1%, during the regular session.

The technology Nasdaq Composite fell 0.1%, even as Big Tech shares outperformed. Amazon, Apple and Alphabet all climbed more than 1%, while Facebook jumped 2.2%.

Both the Dow and S&P 500 notch records close on Monday.

Investors hinted at U.S. patients during Wednesday’s session through the latest minutes of the Fed’s meeting, which showed that officials plan to keep the rate of asset purchases the same for some time, as the central bank works to support stable prices and maximum employment.

For Evercore ISI equities strategist Dennis DeBusschere, the market is not entirely convinced that robust economic growth and inflation will not force the central bank’s hand sooner.

“The market predicts that the Fed will have to raise rates before they say they will,” he said in an email. “The question is whether the Fed will raise rates before inflation has moved above 2% for some time.”

If they stick to their plan, the yield curves will intensify as the growth outlook improves and the unemployment rate falls, DeBusschere added. “It’s about OUTCOMES.”

Speaking from Washington on Wednesday, President Joe Biden spoke about his administration’s $ 2 trillion infrastructure plan, which includes a 28% increase in corporate taxes, and noted that he was willing to negotiate the proposed tax increase.

The proposed increase in corporate taxes is likely to be a major source of tax revenue for the White House infrastructure plan and is not an appetizer for Republicans. pandemic.

Separately, the Treasury said Biden’s tax proposals would generate about $ 2.5 billion over 15 years in an effort to pay for eight years of spending on roads, bridges, transportation, broadband and other projects.

Fiscal support is seen as a major driver for the past month’s equities and strong economic data, including a stronger-than-expected report in March. The S&P 500, Dow Industrial and Nasdaq Composite are all making their fourth consecutive quarter of profits as the economic recovery of Covid-19 accelerates.

On Thursday, investors will worry about the Department of Labor’s latest update on the number of Americans applying for unemployment benefits for the first time. Economists interviewed by Dow Jones expect first-time claims in the week ended April 3 to total 694,000.