Stock futures soared in Tuesday morning trading as investors awaited the inauguration of President-elect Joe Biden.
Futures in the Dow Jones Industrial Average rose 75 points. The S&P 500 futures gained 0.3% and the Nasdaq 100 futures rose 0.5%.
Netflix rose more than 10% in extended trades after the company reported strong subscriber growth and said it was considering buying back shares. Netflix handily exceeded estimates of global net subscriber additions, reporting 8.5 million against 6.47 million predicted analysts.
Biden will succeed President Donald Trump as the 46th President of the United States shortly after midday ET. His inaugural address will focus on the need to bring the country together in the wake of a violent Capitol rebellion and amid extreme partisanship in Congress.
Investors will also be on the lookout for any additional information about Biden’s $ 1.9 trillion Covid-19 aid plan revealed last week. On Tuesday, Janet Yellen, the nominee nominated by Biden for Treasury secretary, endorsed higher spending on aid and asked lawmakers to “act big.”
“Everything else could take a back seat to events in Washington, as investors anticipate major changes in the policy and prospects for a new management,” said TD Ameritrade chief market strategist JJ Kinahan.
Wall Street started the week with modest gains. The Dow Jones rose more than 100 points on Tuesday, while the S&P 500 gained 0.8%, breaking a two-day losing streak. Nasdaq Composite rose 1.5%, with major technology stocks recovering from last week’s heavy losses.
Biden’s stimulus proposal requires direct payments of $ 1,400 for most Americans, as well as additional unemployment insurance, as well as state and local government aid. He also announced a comprehensive plan to combat the pandemic in the United States, which includes a nationwide vaccination campaign.
The United States fell far short of its goal of vaccinating 20 million people by the end of last year. Although the Trump administration’s Warp Speed operation has distributed more than 31.1 million doses across the country, only 12.3 million people have been vaccinated.
“I believe there is a very strong light at the end of the tunnel. We just need to survive in the coming months,” said Kristina Hooper, chief global strategist at Invesco. “I hope that the markets will continue to move in expectations of a robust recovery in late 2021, when vaccines are widely distributed.”
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