Equity futures rose Tuesday night, spreading progress earlier as investors looked ahead to the first actions of the incoming Biden government.
Contracts on the Dow added more than 50 points, or 0.2%, when the overnight session began. Shares of Netflix (NFLX) rose 12% in late trading after the company added more users than expected in the fourth quarter, surpassing 200 million paid subscribers for the first time ever.
On Wednesday, all eyes will be on the inauguration of Elected President Joe Biden, which will take place around noon on the Western Front of the Capitol in a scaled-down, socially distant event.
In his first office hours, Biden will immediately begin signing executive actions to address the pandemic, virus-stricken economy, climate change and racial equality, according to a memorandum from incoming White House Chief of Staff Ron Klain.
In addition, Biden will quickly start to get more help for virus relief in the economy, after announcing last week a $ 1.9 billion proposal that will include increased stimulus controls, expanded unemployment benefits and aid to state and local governments include.
Janet Yellen, Biden’s nominee as treasury secretary, pleaded for substantial extra spending on coronavirus during her confirmation hearing before the Senate Finance Committee on Tuesday, adding that she would also work with the Biden government on its other priorities, including: increasing infrastructure investments, environmental protection legislation and eventual tax reforms.
Nevertheless, her discussions of the $ 1.9 billion stimulus package have received some backlash from Republican lawmakers, many of whom, apart from another important package they have proposed, might not be targeted enough to provide just those what it needs most.
The virus’ human and economic toll became even clearer on Tuesday when the US passed the grim milestone of 400,000 total coronavirus-related deaths for the first time. Deaths and hospitalizations have increased over the past week as the increase after holidays has come in full force.
But even in light of the current spread of the virus, traders have turned their eyes to the future, in anticipation of the acceleration of the implementation of the coronavirus and the economic reopening that is expected to take place.
‘Markets are forward-looking, so it’s not exactly about the immediate increase in coronavirus for hospitalizations. “It’s more about what the economy will look like later this year,” Ryan Payne, president of Payne Capital Management, told Yahoo Finance on Tuesday. ‘And I think if you start looking at it [the fact that] you have a new president, you have a democratic majority in both the House and the Senate, the one thing I think we can bet on here is that we’re going to see everything to spend everything from this $ 1, 9 billion account they are trying to pass, in addition to the trillion dollars we already passed last year, plus the 900 billion dollars we already passed in December, we can see that some infrastructure will have another billion billion account be. ‘
‘We’re just looking at so much liquidity out there, and I think what the market is telling you now: you’re starting to see interest rates go up, you’re seeing commodity prices go up – that inflation is a real thing and pushing all this cash will definitely causing inflation, as we look forward to later in the year, ‘he added.
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18:06 ET Tuesday: futures rise, earning earlier gains
These were the most important moves in markets, from Tuesday 18:06 ET:
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S&P 500 futures (ES = F): 3,799.5, with 9 points or 0.24%
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Dow futures (YM = F): 30,878.00, with 50 points or 0.16% higher
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Nasdaq futures (NQ = F): 13,044.25, with 58.75 points or 0.45%
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