Traders on the floor of the New York Stock Exchange.
U.S. stock futures rose overnight trading and pointed to opening gains on Monday, continuing last week’s rally that the Dow and S&P 500 recorded a maximum.
Dow futures rose 105 points. S&P 500 futures rose 0.25% and Nasdaq 100 futures 0.2%.
Shares rose last week, the Dow Jones industry average rose 4% and the S&P 500 rose 2.6%. S&P 500 and Dow both closed on Friday at record highs.
The Nasdaq Composite advanced 3% last week, despite Friday’s sell-off boosted by rising interest rates. The jump in bond yields has sparked stock growth in recent weeks and sent investors into cyclical market pockets. The Nasdaq was up less than 1% this month, while the Dow and S&P were up 6% and 3.5%, respectively.
The US ten-year treasury reached its highest level in more than a year on Friday. The Treasury reference banknote reached 1,642%, which is the highest level since February 2020.
The small-cap rapper Russell 2000 rose more than 7% last week as investors turned to smaller stocks benefiting from a sharp economic return.
Last week, investors backed a $ 1.9 trillion stimulus package that President Joe Biden signed into law. The IRS began processing $ 1,400 in direct payments on Friday, and checks went into bank accounts over the weekend. The bill will also put nearly $ 20 billion into vaccinations against Covid-19 and $ 350 billion to help the state, local and tribal governments.
Investors will prepare for a meeting of the Federal Open Market Committee on Tuesday and Wednesday at which the Federal Reserve will make a decision on interest rates. The bond market is likely to boost the Federal Reserve next week.
The central bank is expected to recognize much better economic growth. Bond professionals are also monitoring whether Fed officials will adjust their interest rate outlook, which now does not include any rate increases until 2023.
Goldman Sachs chief economist David Kostin told clients on Sunday that he expects interest rates to continue to rise in the coming months and investors will have to “constantly fight anxiety over economic overheating and a tightening of the Fed.”
As for the vaccine, Biden announced last week that he would require states that all adults meet the requirements for the vaccine by May 1st. Biden also set a goal for Americans to gather in person with their friends and loved ones in small groups to celebrate July 4th.