US stock futures rose during overnight trading on Wednesday as equities grew in February.
Dow-related futures gained 34 points, or 0.09%. The S&P 500 futures and the Nasdaq 100 futures rose 0.06% and 0.07%, respectively.
The move comes after the Dow advanced 63 points during regular trading hours to close at a record high. In a volatile session with an average fluctuation of 30 shares between gains and losses, Dow also reached the ninth intraday record of the year.
The S&P 500 and Nasdaq Composite also hit records during Wednesday’s session, but the indices were ultimately unable to maintain those gains. The S&P ended 0.03% lower, while the Nasdaq fell 0.25%.
Federal Reserve Chairman Jerome Powell said Wednesday that the economy faces labor market challenges and that monetary policy must therefore remain “patient to accommodate.” In comments to the New York Economic Club, Powell said the image of employment is a “long way to go”.
“Powell has clung to his weapons today,” said LPL chief financial market strategist Ryan Detrick. “With many worried about too much stimulus and higher inflation, he is more concerned about a stubborn picture of employment. The truth is that low rates are here to stay in the foreseeable future, and today’s speech didn’t do much. to change that, “he added.
For the week, all three major averages are higher and are about to display their second positive week in a row. Although still at the beginning of the month, the indices are also higher for February. Russell 2000 continues to attract attention, and the low capitalization index exceeds the S&P for the week, month and year so far.
In Washington, stimulus talks are ongoing, with investors anticipating that any further aid measures would support further action.
“Markets anticipate a lot of incentives that will be pumped into the economy,” said Scott Wren, senior market strategist at the Wells Fargo Investment Institute. “We believe that additional incentives are needed to help the economy and consumers bridge the gap between now and when vaccines are given more widely and blockages are high,” he added.
A week full of earnings will continue on Thursday. PepsiCo, Kraft Heinz and Kellogg are among the names set to report before the market opens. Disney and Expedia will release their quarterly bells on Thursday.
Of the S&P 500 components that have reported gains so far, more than 80% have exceeded Wall Street expectations, according to a CNBC analysis.
“As we go through February, we have states that are reopening, the virus is declining and vaccinations are spreading rapidly. Looking back, we have lost jobs, redundancies have increased and confidence has fallen,” said Brad McMillan, investment director Commonwealth Financial Network.
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