U.S. Senate Majority Leader Mitch McConnell speaks during a news conference with other Senate Republicans at the U.S. Chapter in Washington, DC, on December 15, 2020.
Tom Brenner | AFP | Getty Images
Stock futures rose on Sunday, while Congress was able to reach an agreement to stimulate the coronavirus a few hours before the deadline.
Dow Jones industrial average futures gained 100 points. The S&P 500 futures rose slightly, and the Nasdaq 100 futures rose 0.2%. At Monday’s opening, Tesla will enter the S&P 500 with a 1.69% share in the index, the fifth largest.
Senate Majority Leader Mitch McConnell said lawmakers had reached an agreement on a $ 900 billion aid package that would provide direct payments and aid to unemployed Americans in distress. The announcement came after negotiators resolved a key point by restoring the Federal Reserve’s emergency lending powers.
To avoid closing the government that would begin Monday at 12:01 ET ET, Congress is seeking to approve a one-day spending measure on Sunday. Lawmakers will then vote on the aid and funding bill on Monday.
Major averages have recently risen to peak at optimism for fresh coronavirus stimulus as well as vaccine launch. Moderna delivers its first batch of vaccine doses after receiving FDA approval for emergency use. In the meantime, Pfizer and BioNTech vaccines are being distributed to healthcare workers across the country.
“In the eyes of stocks, the inexorable vaccination process, which is just beginning, is stronger than current trends in cases and blockages, and this will prevent markets from penetrating too deep into a well of pandemic despair,” said Adam Crisafulli, founder of Vital Knowledge. , said in a note Sunday.
“We remind you that the three pillars of the rally remain very much in place: vaccines, strong corporate gains and massive incentives,” he added.
With only two weeks of trading left in 2020, the S&P 500 rose 14.8% for the year, while the 30-share Dow rose 5.8%. Nasdaq Composite rose 42.2% this year as investors favored high-growth technology companies.
On Friday, the Fed announced that it will allow the nation’s major banks to resume share buybacks in the first quarter of 2021, subject to certain rules.
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