• Home
  • About
  • Contact Us
  • Privacy Policy

Superior Invest

Investments with confidence

  • Budgeting 101
  • Debt & Credit Tips
  • Saving Money
  • Finance Videos
  • Personal Finance News
  • Personal Finance Books

Dow futures drop 300 points as lawmakers reach last-minute stimulus deal




Leave a Comment


US Senate Majority Leader Mitch McConnell speaks during a news conference with other Senate Republicans at the US Capitol in Washington, DC, on December 15, 2020.

Tom Brenner | AFP | Getty Images

Stock futures traded in the red early Monday as Congress managed to seal a coronavirus stimulus deal hours before a shutdown deadline.

Futures on the Dow Jones Industrial Average pointed to an opening drop of 300 points. S&P 500 futures and Nasdaq 100 futures both traded lower. At Monday’s open, Tesla will enter the S&P 500 with a 1.69% weighting in the index, the fifth largest. 

Senate Majority Leader Mitch McConnell and Minority Leader Chuck Schumer said lawmakers have reached an agreement on a $900 billion relief package, which would provide direct payments and jobless aid to struggling Americans. The announcement came after negotiators resolved a key sticking point by rolling back the Federal Reserve’s emergency lending powers.

Congress passed a one-day spending bill to avoid a government shutdown that would have started at 12:01 a.m. ET Monday. President Donald Trump signed the measure late Sunday evening, according to White House spokesman Judd Deere.

Lawmakers will vote on the relief and funding bill on Monday.

The major averages have recently risen to record highs amid optimism toward fresh coronavirus stimulus as well as the vaccine rollout. Moderna is shipping its first batch of vaccine doses after receiving approval for emergence use from the U.S. Food and Drug Administration. Meanwhile, the vaccines by Pfizer and BioNTech are being distributed to front-line health-care workers around the country. 

“In the eyes of stocks, the inexorable vaccination process, which is only just getting started, is more powerful than the current trends in cases and lockdowns, and this will prevent markets from delving too deeply down a well of pandemic despair,” Adam Crisafulli, founder of Vital Knowledge, said in a note on Sunday. 

“Recall, the three pillars of the rally all remain very much in place: vaccines, strong corporate earnings, and massive stimulus,” he added.

With only two trading weeks left in 2020, the S&P 500 is up 14.8% for the year, while the 30-stock Dow has risen 5.8%. The Nasdaq Composite has rallied 42.2% this year as investors favored high-growth technology companies.

On Friday, the Fed announced it will allow the nation’s big banks to resume share buybacks in the first quarter of 2021 subject to certain rules.

Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.



Source link

  • Facebook
  • Twitter
  • Google+
  • Pinterest

Filed Under: Personal Finance News

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Email
  • Facebook
  • Google+
  • Pinterest
  • Twitter

Recent Posts

  • GameStop soars nearly 70%, trading briefly halted amid epic short squeeze January 23, 2021
  • Stock futures tick lower to end record-setting week January 22, 2021
  • Stock futures edge higher after markets hit records in previous session, Biden takes office January 21, 2021
  • Stock futures inch higher ahead of Biden’s inauguration January 20, 2021
  • Bank of America (BAC) Q4 2020 earnings January 19, 2021
  • Advice for entrepreneurs in India from its youngest new billionaire January 18, 2021




Copyright © 2021 - SuperiorInvest.com - All Rights Reserved