Stock contracts rose in the first session of 2021 on Monday morning, with the three key indices poised to boost December momentum.
Contracts on the Dow added more than 100 points, or 0.5%, while futures on the S&P 500 also rose by about 0.4%, with about two hours to go until the opening clock. The S&P 500 ended December with a 3.7% increase and a 16% increase for 2020, limiting an extraordinary year in markets, despite the backdrop of the pandemic. Bitcoin prices (BTC-USD) also expanded their recent rally this past weekend, breaking above $ 34,000 to reach a new record before making some gains.
Markets have largely shaken off the new political noise in Washington after President Donald Trump urged Georgia’s secretary of state to reverse his defeat against President-elect Joe Biden, based on a telephone recording first reported by the Washington Post . The demand comes just before the Senate by-elections in Georgia on Tuesday, which will determine control of the chamber, as Republicans currently maintain only a narrow majority.
Traders are heading into the new year with a vaccination of vaccines and more stimulus has recently passed, offering hope for a stronger recovery once vaccinations can ease the restrictions that have been overcoming the country for months. Yet there are obstacles to the outlook, and one of the biggest determinants of economic growth and the surge in profitability for many businesses is the success of vaccine distribution, as COVID-19 cases continue to increase, many strategists said.
“The big question for the world economy over the coming year is how quickly populations are being vaccinated, especially among vulnerable groups such as the elderly and those with underlying health conditions that make up the majority of hospitalizations,” Deutsche Bank economists, including Henry Allen, wrote in a note. . “If the groups most affected can be vaccinated quickly, it could pave the way for the gradual easing of restrictions and the return to something closer to normalcy.”
“Markets are likely to closely monitor any problems with COVID-19 or the roll-out of vaccines, not least given the new variants found in the UK and South Africa, which are spreading faster and found in increasing numbers of countries, “they added.
As of this weekend, the first doses of a COVID-19 vaccine have been given to more than 4 million people in the US, making up more than 1% of the country’s population. Dr. However, Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said the president-elect, Joe Biden, to “inoculate the distribution of 100 million people in the first 100 days” was a ‘realistic goal’, according to ‘ an interview. with ABC on Sunday.
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08:16 ET: Google employees start union as tensions with executives grow
More than 200 employees of Google’s parent company Alphabet (GOOG, GOOGL) have joined a newly formed union called Alphabet Workers Union, following growing dissatisfaction with the management of a number of events over the past few years. It was the first major union attempt in a Big Tech company.
Employees at Google recently raided alphabet executives and management teams over military contracts, their treatment of contract workers and dealing with allegations of sexual harassment. In early December, the National Labor Relations Board claimed that Google had illegally fired two workers who tried to unite in 2019.
“Our union will work to ensure that workers know what they are working on and can do their jobs at a fair wage, without fear of abuse, retaliation or discrimination,” said Google employees Parul Koul and Chewy Shaw, executive and vice president. . of the Alphabet Workers Union, said in a New York Times report on Monday.
The new union will include elected leadership and paid members, and will be open to all Alphabet workers and contractors.
“We have always worked hard to create a supportive and rewarding workplace for our staff,” an Alphabet spokesman told Yahoo Finance. ‘Of course, our employees have protected labor rights that support us. But as we have always done, we will continue to engage directly with all of our employees. ”
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07:55 ET: Oppenheimer sees a 6-10% drop in S&P 500 ‘if Democrats win both seats’ in Georgia’s by-elections
Georgia’s Senate run-off elections pose a short-term risk to equities, and an outcome in which both Democratic challengers emerge victorious could cause a significant drop in the stock market, according to Oppenheimer strategist John Stoltzfus.
“A democratic sweep of the two run-off elections in Georgia could cause the U.S. stock market to experience a decline of between 6% and 10%,” Stoltzfus said in a note published Monday. “In our experience, the markets prefer Washington’s Capitol Hill to have enough controls and balances to keep political power out of one party’s hands.”
‘Not just a few people on Main Street as well as on Wall Street believe that if tomorrow’s a major blow to the Democrats results – which would give them control of the Senate as well as the House – that it “would be bad for business with the probability that tax rates on companies could rise significantly,” he said.
“In addition, a democratic livestock in Georgia is likely to get a boost in the creation and spending of new government programs, while many voters, market participants and business leaders are concerned about the significant level of debt the Treasury has had to incur. provides a financial ‘bridge over troubled waters’ via fiscal stimulus,’ he added.
Republicans currently control 50 seats in the Senate, while Democrats control 48. This means that a Democratic victory for both seats will give the party the majority in the chamber if Kamala Harris, the election of the vice-president, is able to break votes.
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07:18 ET Monday: Stock futures indicate higher open
These were the main movements in markets from 07:18 ET:
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S&P 500 futures (ES = F): 3,765.5, with 16.75 points or 0.45%
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Dow futures (YM = F): 30,642.00, with 145 points or 0.48%
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Nasdaq futures (NQ = F): 12,935.25, with 49.75 points or 0.39%
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Ru (CL = F): – $ 0.05 (-0.1%) to $ 48.47 per barrel
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Gold (GC = F): + $ 41.30 (+ 2.18%) to $ 1,936.40 per ounce
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10-year Treasury (^ TNX): +1.6 bps, yielding 0.928%
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