US stock index futures were slightly changed in overnight trading on Tuesday, after a session in which shares alternated between gains and losses.
Futures contracts related to the Dow Jones Industrial Average slipped 20 points. S&P 500 and Nasdaq 100 futures decreased by 0.09%.
Shares closed slightly on Tuesday as traders absorbed higher interest rates, possible additional stimulus measures and political turmoil.
The Dow Jones industrial average rose 60 points, or 0.2%, to 31
Given the increase, Credit Suisse advised investors to prefer pro-cyclical sectors, including finance and energy. Rising rates could hurt growth stocks, and a number of technical burdens, including Facebook and Apple, eased during Tuesday’s session.
The expectation of an additional fiscal stimulus is one of the reasons for the stable movement of higher yields. President-elect Joe Biden is expected to announce details of his economic plan on Thursday.
“At least a fiscal package of $ 500 billion, consisting of additional incentives for inspections, extended unemployment benefits and financing health care and the payment of vaccines, will be another impetus for economic growth in 2021,” Jason said. Draho, head of UBS Global Wealth Management in America asset allocation.
After the muted session on Tuesday, the main averages remained lower for the week after the slide on Monday. The Nasdaq Composite is a relative drawback, declining by about 1% in the last two sessions. However, small caps are a bright spot, and Russell 2000 has grown by 1.7% so far this week.
The moves come as the turmoil in Washington continues. The Democratic House will vote Tuesday night on a resolution calling on Vice President Mike Pence and the cabinet to invoke the 25th Amendment to oust Trump from the White House.
Covid cases also continue to rise in the United States and abroad. The United States recorded at least 248,650 new cases of Covid-19 and at least 3,223 virus-related deaths each day, based on a seven-day average calculated by CNBC using data from Johns Hopkins University.
However, many say the United States is ready to return to growth later this year.
“In 2021, the US economy must experience a strong wind of additional fiscal and monetary stimulus, combined with an end to the pandemic’s impact on the economy,” said Brent Schutte, chief investment strategist for managing mutual wealth in the Northwest. “Retained demand in industries affected by COVID-19 … and the necessary recovery of stocks should further stimulate job growth,” he added.
Taken together, Schute said this marked the beginning of above-average economic growth and saw stocks rise to new heights.
– Jacob Pramuk from CNBC participates in the reports.
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