The US stock index futures contract rose higher during overnight trading on Wednesday as stocks continued to build on the February momentum.
Forward contracts linked to the Dow scored 34 points, or 0.09%. S&P 500 futures and Nasdaq 100 futures rose 0.06% and 0.07% respectively.
The move comes after Dow advanced 63 points during normal trading hours to close a record high. In a volatile session in which the average of 30 shares took place between gains and losses, the Dow also achieved its ninth intraday record of the year.
The S&P 500 and Nasdaq Composite also reached a record high during Wednesday’s session, but the indices ultimately failed to make a profit. The S&P was down 0.03%, while the Nasdaq was down 0.25%.
Federal Reserve Chairman Jerome Powell said on Wednesday that the economy faces challenges in the labor market, and that monetary policy must therefore remain ‘patiently accommodating’. In remarks at the Economic Club in New York, Powell said employment is a ‘long way’ from where it should be.
“Powell got stuck today,” said Ryan Detrick, chief financial officer of the chief financial officer. “With many worried about too much stimulus and higher inflation, he is more worried about a stubborn employment picture. The truth is that the low rates are here to stay for the foreseeable future, and today’s speech has changed little,” he added.
For the week, all three major averages are higher and on course to place their second positive week in a row. While it was still early in the month, the indices are also higher for February. The Russell 2000 continues to attract attention and the childhood index surpasses the S&P for the week, month and year so far.
In Washington, stimulus talks are continuing, with investors expecting any additional mitigation measures to further support equities.
“Markets expect a large amount of stimulus to be pumped into the economy,” noted Scott Wren, senior world strategist at Wells Fargo Investment Institute. “We believe additional stimulus is needed to help the economy and consumers bridge the gap between now and when the vaccines are administered more widely and their closure suspended,” he added.
A busy week of earnings will continue Thursday. PepsiCo, Kraft Heinz and Kellogg are among the names to be reported before the market opens. Disney and Expedia will deliver their quarterly reports on Thursday.
Of the S&P 500 components that have so far generated revenue, more than 80% have met Wall Street expectations, according to a CNBC analysis.
“As we move through February, our reopening states have the virus disappearing and vaccinations spreading rapidly. Looking back, our jobs have declined, layoffs have risen and confidence has declined,” said Brad McMillan, chief investment officer of Commonwealth Financial Network.
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