Equity futures traded overnight Tuesday as investors await the inauguration of President Joe Biden.
The futures contract on the Dow Jones industrial average was low. S&P 500 futures rose 0.1% higher and Nasdaq 100 futures rose 0.3%.
Netflix rose more than 10% in extended trading after the company reported strong growth in the subscriber, saying it was considering buying shares back. Netflix has approved estimates for global paid net subscriber additions, reporting 8.5 million compared to the expected 6.47 million analysts.
Biden will succeed President Donald Trump as the 46th President of the United States shortly after lunch. His inaugural address will focus on the need to bring the country together on the heels of a violent riot on Capitol Hill and amid extreme bias in Congress.
Investors will also be on the lookout for further information on Biden’s $ 1.9 billion Covid-19 emergency relief plan launched last week. Janet Yellen, Biden’s nominee as secretary of the Treasury, on Tuesday endorsed higher spending on aid and urged lawmakers to ‘act big’.
“Everyone else can return to events in Washington as investors look forward to major changes in policies and prospects of a new government,” said TD Ameritrade chief market strategist JJ Kinahan.
Wall Street started the week with modest gains. The Dow rose more than 100 points on Tuesday, while the S&P 500 rose 0.8%, losing two days. The Nasdaq composite rose 1.5% as major tech stocks recovered from the sharp losses last week.
Biden’s stimulus proposal calls for direct payments of $ 1400 to most Americans, as well as additional unemployment benefits as well as state and local government assistance. He also announced a comprehensive plan to combat the pandemic in the US, which includes a nationwide vaccine campaign.
By the end of last year, the US had come a long way from its goal of vaccinating 20 million people. While the Trump administration’s Operation Warp Speed has delivered more than 31.1 million doses across the country, only 12.3 million people have been vaccinated.
“I believe there is a very bright light at the end of the tunnel. We have to go through the next few months,” said Kristina Hooper, Invesco’s chief market strategist. “I expect markets to continue to move in the expectations of a strong recovery later in 2021 when vaccines are widely distributed.”
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