Traders on the floor of the New York Stock Exchange.
Source: New York Stock Exchange
Stock futures were stable in Thursday night trading after Treasury Secretary Janet Yellen said a large Covid aid package is still needed for a full recovery in the U.S.
Futures in the Dow Jones Industrial Average fell just 15 points. The S&P 500 and Nasdaq 100 futures traded lower.
Yellen told CNBC on Thursday after the bell that more stimulus is needed, even with some economic data suggesting a rapid recovery. She added that a $ 1.9 trillion stimulus deal could help the United States return to full employment in a year.
“We think it’s very important to have a big package [that] addresses the pain this has caused – 15 million Americans behind on rent, 24 million adults and 12 million children who do not have enough to eat, small businesses failing, “Yellen told CNBC’s Sara Eisen during an interview” Closing Bell “.
“I think the price of doing very little is much higher than the price of doing something big. We think the benefits will far outweigh the costs in the long run,” she added.
The record stock recovery seems to have failed with fears of rate hikes and higher inflation. The S&P 500 fell for the third consecutive day on Thursday, after a worse-than-expected reading on unemployment insurance claims, as well as weak guidance from Walmart.
Many on Wall Street believe that in order for the market to broaden its pace, expectations of more fiscal stimulus and a smooth reopening must come true.
“Much of our reasoning for further gains from here depends on the continued belief that the key factors that helped bring the market to current levels will remain intact,” said Scott Wren, senior global market strategist at Wells Fargo, in a note. One of the motivators is the “additional stimulus from Congress that will help bridge the gap between now and when vaccines are widely distributed”.
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