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Stock index futures point higher after Dow, S&P 500 snap 7-day winning streak

Stock index futures pointed to the upside on Wednesday, with US equities on track to resume a march to the upside one day after the Dow Jones Industrial Average and the S&P 500 stopped a profit line at seven sessions.

What do large indices do?

Futures on the Dow Jones Industrial Average YM00,
+ 1.03%
rose 256 points, or 0.9%, to 27,871, while the S&P 500 futures ES00,
+ 0.79%
received 23.85 points, or 0.7%, at 3,353.75. Nasdaq-1

00 futures NQ00,
+ 0.77%
increased by 87.50 points, or 0.5%, at 10,964.75.

Dow Jones Industrial Average DJIA,
on Tuesday ended with a loss of 104.53 points or 0.4% at 27,686.91. The blue-chip meter was more than 300 points at its high session. S&P 500 SPX,
ended 26.78 points lower, a loss of 0.8%, at 3,333.69. The technically heavy Nasdaq Composite COMP,
decreased 185.53 points, or 1.7%, ending at 10,782.82.

What drives the market?

Stocks were on track to resume a higher pressure, which has seen the S&P 500 close to its February 19 all-time high, taking back the ground lost in late February and March in a pandemic-inspired sale that saw the benchmark fall around 34%. A slowdown in the number of new COVID-19 cases in the United States and optimism over efforts to produce a vaccine have been cited as drivers of recent gains.

Read:Why the S&P 500 is knocking on the door to its first record close in 6 months

“The news flow was very quiet with no progress in Washington in terms of stimulus calls and some economic emissions elsewhere, but the markets remained in a positive mood and bet on the fact that the worst of COVID-induced slowdown was behind us and that the economy would resume strongly. at the end of the year, says Boris Schlossberg, CEO of the FX strategy at BK Asset Management, in a note.

Senate Majority Leader Mitch McConnell, R-Ky., Reiterated on Tuesday that talks against a new coronavirus support package remained stalemate. Analysts said there were still concerns about legal challenges and the effectiveness of executive orders signed by President Donald Trump over the weekend to extend some of the spending that ended in late July.

A rotation from highflying tech and growth stocks to the left behind cyclical and value stocks seemed to be taking a breather.

On the economic front, the consumer price index in July at 08:30 is eastern. Economists surveyed by MarketWatch expect a 0.4% rise in the index, while the core measure, which removes volatile foods and energy costs, is expected to rise 0.2%.

Which companies are in focus?
  • Parts of the electric car manufacturer Tesla Inc.
    increased more than 6% in market trading after its board approved a five-for-one split of the company’s stock.

  • Moderna Inc.
    Shares jumped more than 11% in premarket action after the drugmaker said late Tuesday that it had reached an agreement to sell 100 million doses of its COVID-19 research vaccine to the US government for more than $ 1.5 billion.

How are other markets traded?

In Asia, China’s CSI 300 Index 000300 is trading,
fell 0.7% while Hong Kong’s Hang Seng Index HSI,
+ 1.42%
closed 1.4% higher and Japan’s Nikkei 225 Index NIK,
+ 0.41%
edged up 0.4%.

In Europe, the pan-European Stoxx 600 Europe Index SXXP,
+ 0.45%
led 0.4% higher and FTSE 100 UKX,
+ 0.75%
extended a 1.7% template from the previous session and climbed 1.2% on Wednesday.

The yield on the 10-year treasury bill TMUBMUSD10Y,
rose 1.9 basis points to 0.667% after rising 8.4 basis points on Tuesday as investors avoided assets in the safe seas. Bond prices are reversing to returns.

Gold GC00,
withdrew for a second session on Wednesday, with December futures tumbling 0.7% to trade at $ 1,933.10 per gram. Crude oil prices rose with US benchmark futures CL.1,
+ 2.01%
advances 1.6% to settle at $ 42.27 per barrel.

The greenback was almost unchanged with the ICE US Dollar Index DXY,
a measure of the money against half a dozen great rivals, at 93,624.

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