U.S. stock futures rose slightly Monday night after a rally that lifted major averages to fresh record highs.
Futures of the Dow Jones Industrial Average traded 48 points higher, or about 0.1%. S&P 500 and Nasdaq 100 futures contracts each achieved 0.1%.
The Dow jumped 204 points or 0.7% earlier in the day, while the S&P 500 and Nasdaq Composite climbed 0.9% and 0.7% respectively.
These gains come after President Donald Trump signed a $ 900 billion coronavirus relief package into law. The measure includes a direct payment of $ 600 to most Americans. The signing comes days after Trump demanded a direct payment of $ 2,000. The House will vote on raising direct payments to $ 2,000, but the GOP-led Senate is unlikely to pass the measure.
“The combination of vaccine deployment, fiscal stimulus and easy monetary policy continues to create a positive backdrop for equities starting in 2021,” wrote Mark Haefele, chief investment officer of UBS Global Wealth Management. “The agreement on a fresh US fiscal stimulus package removes a recent obstacle, and global central banks continue to support the recovery by maintaining (and expanding) monetary accommodation.”
Monday’s rally increased the S&P 500 by 15.6% for the year and the Dow by 6.5% over that period. The Nasdaq Composite rose more than 43% in 2020 as investors flocked to big tech names like Apple, Amazon and Facebook.
The number of cases of coronavirus is still increasing in the US, but it raises doubts about the economic recovery after the new year. According to the CNBC analysis of Johns Hopkins University data, at least 184,000 new infections were reported in the US in the past week.
“The distribution of vaccines has now officially begun … yet the pandemic has reached across levels in several areas,” wrote Jason Pride, general manager of private wealth at Glenmede.
“The viral revival has caused lock-in measures across the country, hampering economic reopening efforts. If the spread of the virus is not brought under control by the end of the year, it is likely to be a major initiative to crack it down in early 2021. “before a vaccine became widespread,” Pride added.
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