US futures fell on Tuesday night after President Donald Trump voiced concern over the new Covid-19 aid package, which could delay funding to troubled Americans.
Dow futures fell 110 points. The S&P 500 futures and the Nasdaq 100 futures lost 0.5% and 0.4%, respectively.
Late Tuesday, Trump called the new $ 900 billion Covid exemption bill an inappropriate “shame” and urged lawmakers to change the content of the bill, especially the amount allocated for direct payments to Americans. Trump did not threaten to veto the law, but demanded that an “appropriate bill be sent to him, otherwise the next administration will have to deliver a Covid aid package.”
On Tuesday, the Dow Jones industrial average fell 200 points, despite a 2.9% jump in Apple stock. The S&P 500 fell 0.2% on its third day of losses. Travel stocks have come under pressure amid persistent concerns about the new coronavirus strain in the UK
Actions fell despite the fact that Congress passed a $ 900 billion pandemic aid bill after long denials. Investors could certainly make a profit after a solid return on equities in 2020 as the end of the year approaches.
The package includes additional benefits for the unemployed, several small business loans, direct payments of $ 600 and funds for the distribution of Covid-19 vaccines, among other provisions. President Donald Trump is expected to sign the bill in the coming days.
“The stock market further strengthens the old saying ‘buy on rumors (about another stimulus package) and sell on the news,'” Jim Paulsen, chief investment strategist at Leuthold Group, told CNBC. “Over the past few days, the action has been quite disappointing, with another $ 900 billion in tax relief. Despite increased tax support, the S&P 500 leadership has returned to technology and far from cyclical.”
Nasdaq Composite was the best performer on Tuesday, closing with 0.5% to a new record, as Amazon, Apple and Microsoft all closed above. The stationary bicycle company Peloton decreased by 11%.
The Russell 2000 small capital benchmark rose 0.99% to a record close. Small caps rose 105.94%, more than double their March lows.
“The big winner, however, has been small-cap stocks, which appear to be growing lately with or without the prospect of an additional stimulus,” Paulsen added. “Cyclicals, and especially international stocks, were hit today by a significant recovery in the US dollar that reversed some of its recent weakness.”
Despite the newly approved tax support, millions of Americans are still struggling to find work, while the pandemic has affected the workforce.
Last week’s unemployment complaint numbers appear Wednesday at 8:30 AM ET. Economists surveyed by the Dow Jones are expected to have 888,000 Americans claiming unemployment last week, more than the 885,000 of the previous week.
The United States reports at least 215,400 new cases of Covid-19 and at least 2,600 virus-related deaths each day, based on a seven-day average calculated by CNBC using data from Johns Hopkins University.
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