Stocks fluctuated in early Monday trading, with US equity futures and global stocks rising back to all time highs before fading some gains, as optimism over the $1.9 trillion U.S. stimulus plan fizzled modestly following a WaPo report that a bipartisan group was seeking to cut back on the proposed dollar amount while rising COVID-19 cases and delays in vaccine supplies muted some of the market’s recent euphoria.
While E-Mini S&P futures were up “just” 7 points, or 0.20% to 3,842, Nasdaq futures soared on Monday, up 130 points or more than 1%, and outperforming contracts on the Russell 2000 Index of small-cap shares. After ending on a cautious note last Friday, global stocks resumed their march upward. Key for the market this week will be the parade of earnings, with the biggest U.S. tech giants including Apple, Tesla and Facebook scheduled to release results.
“The Federal Reserve, continued string of earnings with big techs ahead and the fear of missing out are driving the equity market,” said Sebastien Galy, a senior strategist at Nordea Investment Funds. “We expect the Fed to push back against the notion of tapering and that should be supportive of risky assets.”
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