Categories: Stocks & Shares

U.S. stock index futures mildly higher

The Dow Jones Industrial Average gained 0.2%, and the Nasdaq Composite rose 0.3%

U.S. stock index futures were mildly higher in early morning trading on Wednesday, after a session that saw stocks alternate between gains and losses.

Futures contracts tied to the Dow Jones Industrial Average advanced 46 points. S&P 500 futures and Nasdaq 100 futures also both traded in marginally positive territory.

Stocks closed little changed on Tuesday as traders digested higher rates, possible additional stimulus measures and political turmoil.

The Dow Jones Industrial Average rose 60 points, or 0.2%, to 31,068.69. The Nasdaq Composite ended the day up 0.3% and the S&P 500 rose slightly to 3,801.19. Meanwhile, the yield on the benchmark 10-year Treasury briefly traded at 1.18%, its highest level since March.

Given the rise, Credit Suisse recommended that investors favour pro-cyclical sectors, including financials and energy. Rising rates could hurt growth stocks, however, and a number of tech heavyweights including Facebook and Apple declined during Tuesday’s session.

Expectations for additional fiscal stimulus is one of the reasons behind the steady move higher in yields. President-elect Joe Biden is expected to release details on his economic plan on Thursday.

At a minimum, even a USD 500bn fiscal package consisting of additional stimulus checks, extended unemployment benefits, and funding for healthcare and vaccine disbursement will be another boost to economic growth in 2021, noted Jason Draho, UBS Global Wealth Management head of Americas asset allocation.

Following Tuesday’s muted session, the major averages remain lower for the week after Monday’s slide. The Nasdaq Composite is the relative underperformer, down roughly 1% over the last two sessions. Small caps are, however, a bright spot, and the Russell 2000 is up 1.7% so far this week.




Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Share
Richard Stanley

Recent Posts

World stock markets hit record highs

Asian stocks touched new peaks, Wall Street reached new highs, and MSCI’s global index added 0.28% World stock markets racked… Read More

3 hours ago

London stocks to open marginally lower

The FTSE 100 finished 0.4% lower at 6,715.42 on Thursday, down 0.3% since the week began Stocks in London are… Read More

3 hours ago

Indonesia stock market flat

The Jakarta Composite Index ended slightly lower, dropping 0.25 percent at 6,413.89 The Indonesia stock market has alternated between positive… Read More

3 hours ago

Netflix share price soars to double-digit gains on 200 million subscribers milestone is passed

The Netflix share price has soared by almost 13.5% in early trading on Wall Street this morning after the television… Read More

1 day ago

Stock market surges as Biden becomes president

The S&P 500 added 13 per cent on Wednesday, the best increase seen for any president since 1952 The stock… Read More

1 day ago

China stock market bounces higher again

The index added 0.47 percent to close at 3,583.09, while the Shenzhen Composite Index climbed 1.43 percent to finish at… Read More

1 day ago

This website uses cookies.

Read More