U.S. stock index futures soared during Wednesday morning trading, as stocks appeared to increase with February dynamics.
Futures contracts linked to Dow gained 34 points, or 0.09%. The S&P 500 and Nasdaq 100 futures were up 0.06% and 0.07%, respectively.
The move comes after the Dow advanced 63 points during normal trading hours to close at a record high. In a volatile session that saw an average of 30 stocks fluctuating between profit and loss, the Dow Jones also hit its ninth intraday record of the year.
The S&P 500 and Nasdaq Composite also hit record highs during Wednesday’s session, but the indices failed to maintain those gains. The S&P closed down 0.03% down, while the Nasdaq fell 0.25%.
Federal Reserve Chairman Jerome Powell said on Wednesday that the economy faces challenges in the labor market and therefore monetary policy needs to remain “patiently accommodative”. In comments at the Economic Club of New York, Powell said that the job board is a “long way” from where it needs to be.
“Powell stood his ground today,” said Ryan Detrick, chief financial strategist at LPL. “With many concerned about too much stimulus and higher inflation, he is more concerned with a stubborn job situation. The truth is that low rates are here to stay for the foreseeable future and today’s speech has done little to change that, ”he added.
For the week, the top three averages are higher and are on track to post their second consecutive positive week. Even at the beginning of the month, the rates are also higher for February. Russell 2000 continues to attract attention, and the small cap index is overtaking the S&P for the week, month and year so far.
In Washington, stimulus talks are underway, with investors predicting that any additional relief measures would further support the actions.
“The markets are predicting a large amount of stimulus being injected into the economy,” noted Scott Wren, senior global market strategist at the Wells Fargo Investment Institute. “We believe that additional stimuli are needed to help the economy and consumers to bridge the gap between now and when vaccines are more widely administered and blocks are lifted,” he added.
A busy week of earnings will continue on Thursday. PepsiCo, Kraft Heinz and Kellogg are among the names that will be released before the market opens. Disney and Expedia will report quarterly after the bell on Thursday.
Of the S&P 500 components that have reported profits so far, more than 80% have exceeded Wall Street expectations, according to an analysis by CNBC.
“As we move through February, we have states reopening, the virus decreasing and vaccinations spreading rapidly. Looking back, we have had declining jobs, increasing layoffs and declining confidence,” said Brad McMillan, chief investment officer at the Commonwealth Financial Network .
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