Stock futures were slightly higher on Friday early Friday after the finance minister Janet Yellen He said Covid’s large aid package is still needed for a full recovery in the United States
The Dow Jones Industrial Average futures meant an initial gain of about 55 points. S&P 500 futures traded near a straight line, while Nasdaq 100 futures were slightly higher.
Yellen told CNBC Thursday after the bell that a greater incentive is needed, even though some economic data has suggested a quick return. She added that a $ 1.9 trillion incentive agreement could help the United States return to full employment in a year.
“We think it’s very important to have a big package [that] tackles the pain this has caused – 15 million Americans behind on rent, 24 million adults and 12 million children who don’t have enough to eat, small businesses are failing, “Yellen told CNBC’s Sarah Eisen during.”Closing the bell“interview.
“I think the cost of too little work is much higher than the cost of doing something big. We think the benefits in the long run will far outweigh the costs,” she added.
Stock market growth appears to have collapsed as fears of rising rates and higher inflation have crept in. The S&P 500 fell on Thursday for the third day in a row after reading bad claims for the unemployed as well as Walmart’s weak guidelines than expected.
Many on Wall Street believe that expectations for further fiscal stimulus and a smooth reopening should become a reality in order for the market to expand its march further.
“Much of our rationale for additional gains from here depends on the continued belief that the major drivers that helped keep the market at current levels will remain intact,” Scott Wren, senior global market strategist at Wells Fargo, said in a note. One of the triggers is “an additional incentive from Congress to help bridge the gap between now and when vaccines are widely distributed.”
The S&P 500 and Nasdaq Composite are down 0.5% and 1.6%, respectively, this week on track to end their two-week winning streak. Blue Dow Dow has recorded growth of only 0.1% in the week to date.
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