Traders on the floor of the New York Stock Exchange.
Source: NYSE
US futures rose in overnight trading and showed gains on Monday, continuing last week’s rally that led the Dow and S&P 500 to record highs.
Dow futures rose 70 points. The S&P 500 futures gained 0.15% and the Nasdaq 100 futures rose 0.05%.
Stocks rose last week, with the Dow Jones industrial average up 4% and the S&P 500 gaining 2.6%. The S&P 500 and Dow both closed at record highs on Friday.
Nasdaq Composite advanced 3% last week, despite Friday’s sell-off boosted by rising interest rates. The jump in bond yields has led to rising stocks in recent weeks and sent investors into cyclical market pockets. The Nasdaq rose below 1% this month, while the Dow and S&P rose 6% and 3.5%, respectively.
The 10-year US Treasury hit its highest level in more than a year on Friday. The benchmark treasury rating reached 1.642%, the highest level since February 2020.
The benchmark level of Russell 2000 small capital rose by more than 7% last week as investors turned into smaller equities, benefiting from a sharp economic recovery.
Last week, investors cheered on the $ 1.9 trillion stimulus package that President Joe Biden signed into law. The IRS began processing $ 1,400 in direct payments on Friday, and checks began hitting bank accounts over the weekend. The bill will also put nearly $ 20 billion in vaccinations against Covid-19 and $ 350 billion in state, local and tribal government aid.
Investors will prepare for the meeting of the Federal Open Market Committee on Tuesday and Wednesday, where the Federal Reserve will rule on interest rates. Next week’s bond market is likely to pick up from the Federal Reserve.
The central bank is expected to recognize much better economic growth. Bond professionals are also looking at whether Fed officials will change their interest rate outlook, which now does not include any rate hikes until 2023.
Goldman Sachs chief economist David Kostin told customers on Sunday that he expects interest rates to rise further in the coming months, and investors will have to “continually struggle with anxiety over economic overheating and the Fed’s slowdown.”
As for the vaccine, Biden announced last week that it will direct states to make all adults eligible for the vaccine by May 1. Biden has set a goal for Americans to gather in person with their friends and loved ones in small groups to celebrate July 4th.