Fixed futures stocks after the Dow, S&P 500 reached new records

Futures on major US stock indices held during the overnight session on Sunday night, suggesting that Wall Street could see trading disabled on Monday, after hitting new records last week.

Dow futures lost 2 points, while contracts related to the S&P 500 and Nasdaq 100 were also slightly changed.

The warm movement in the futures market on Sunday followed another record close for the Dow Jones industrial average on Friday, when it gained almost 300 points to end at 33,800.6. The S&P 500 gained 0.8% and reached its third consecutive record.

Stocks related to the recovering economy led to many of last week’s gains as US vaccination efforts accelerated. Both the Dow and the S&P 500 were up at least 2% last week. Nasdaq rallied 3.1% in the same period that some traders got big names in technology, Apple rose by more than 8%, and Amazon and Alphabet each gaining more than 6%.

The first quarter earnings reporting season begins this week, with expectations set for positive news in general and an upward trend in US equities due to a recovering economy. Many of the nation’s largest banks, including Goldman Sachs and JPMorgan Chase, will report results for the three months ended March 31 this week.

Next week is also full of Federal Reserve speeches and key economic data, including a much-anticipated reading of inflation on Tuesday, when the consumer price index launches.

Fed Chairman Jerome Powell begins a week of several Fed appearances with a 60-minute Sunday night interview. He also speaks Wednesday at a Washington Economic Club event.

“A positive fiscal shock, strong housing winds, a large stock of savings and the Fed letting inflation exceed 2% mark a fundamentally different economic context,” Evercore ISI stock strategist Dennis DeBusschere wrote in an email. “US data is expected to be strong this week, and US vaccinations are on the rise. Real rates are still too negative and are moving higher, supporting the overcoming of the risk factor. “

Investors will also follow President Joe Biden’s efforts to advance a major infrastructure proposal known as the American Jobs Plan. Biden, who along with other Democrats promised a significant infrastructure overhaul in the 2020 election, will meet Monday with a bipartisan group of lawmakers to try to persuade Capitol Hill to support the $ 2 trillion package.

The congress will return to Washington this week and will be in session for the first time since Biden launched his proposal, which allocates hundreds of billions of dollars to roads, bridges, airports, broadband, electric vehicles, housing and training.

The president’s plan would also increase the corporate tax rate to 28% and counteract other tax evasion strategies abroad.