A woman takes a selfie with the “Charging Bull” statue on February 17, 2021 in New York City.
ANGELA WEISS | AFP | Getty Images
Stock futures remained stable in Monday morning trading after the Dow Jones Industrial Average and S&P 500 closed at record highs, with strong economic data raising hope for a smooth recovery.
The futures of the Dow Jones Industrial Average and the S&P 500 have changed little. Nasdaq 100 futures were up 0.2%.
Wall Street recovered to record levels on Monday after a report of explosive jobs and an increase in the service industry’s activity indicator showed that the economic recovery gained momentum amid the accelerated launch of vaccines.
“Vaccinations are being launched at a record pace and Congress’ historic stimulus efforts have paved the way for continued positive momentum in the market,” said Chris Larkin, managing director of trade and product investment at E-Trade Financial.
Bond yields had another quiet session, with the 10-year Treasury yield standing at 1.71%, easing fears of rising inflation.
Cleveland Federal Reserve President Loretta Mester told CNBC on Monday that she is not at all concerned about this year’s rise in government bond yields.
“I think the higher yields on the bonds are quite understandable in the context of improving economic prospects. The increase was an orderly increase,” said Mester. “So I am not concerned at the moment with rising yields. I don’t think there is anything the Fed can react to.”
Investors continue to assess President Joe Biden’s $ 2 trillion infrastructure proposal and his chance of coming true. While politicians on both sides of the corridor support funding to rebuild American roads and bridges, disagreements over other priorities and the final size of the project remain. There is also debate about Biden’s plan to raise corporate tax to 28%, in part to finance the plan.
Biden said on Monday that he did not fear that a rise in corporate taxes would hurt the economy. West Virginia conservative Democratic senator Joe Manchin said he opposed the proposed 28% tax increase.