Traders are working on the floor of the New York Stock Exchange.
NYSE
US futures rose Wednesday night as traders watched interest rates and persistent unrest in Washington.
Dow Jones Industrial Media traded 46 points higher, or 0.1%. The S&P 500 futures gained 0.2% and the Nasdaq 100 futures advanced 0.1%.
Earlier in the day, the S&P 500 and Nasdaq Composite gained 0.2% and 0.4%, respectively. Meanwhile, the Dow closed the apartment.
Wednesday’s gains for the S&P 500 and Nasdaq came after Intel garnered nearly 7% to drive higher tech stocks. US interest rates also fell, falling from their highest levels in March 2020.
The 10-year reference yield decreased to 1.09% per day after reaching a maximum of 1.18%. This drop in rates came as two key Federal Reserve officials noted that monetary policy will remain light in the foreseeable future.
The Fed’s vice president said the central bank would not raise rates until inflation reached 2%. Meanwhile, Fed Chairman St. Louis, James Bullard, mentioned that there will be a time when politics should be tightened, “but boy, I wouldn’t want to set a specific date for this right now.”
Rates have risen this year amid growing prospects for US fiscal stimulus, after Democrats secured a majority in both the House and Senate. Inflation expectations have also risen recently.
“We believe that US inflation will be higher than most expect in the next few years,” wrote Adam Hoyes, assistant economist at Capital Economics. “At the same time, we believe investors are overestimating how quickly the Fed will allow monetary conditions to tighten. The new flexible average inflation targeting framework suggests that it will allow inflation to rise above 2% over the next few years.”
Investors are also eyeing Washington as members of the House vote to indict President Donald Trump for the second time – making him the first U.S. president to be indicted twice – as a bipartisan majority accused him. that it sparked a riot in the U.S. Chapter last week.
To be sure, the market has raised much of the growing political and civil unrest.
“Normally, we would expect risky assets to withdraw during such an event, but the market seems more focused on the next administration at this time,” said Brian Price, head of investment management at the Commonwealth Financial Network. “
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