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S&P Futures Hit Record High, Oil Soars As Frozen Chaos Hits Plains States

US cash markets may be closed for holiday (as is China and Hong Kong) but futures are up and running, and we mean up with EMinis bursting out of the gate late on Sunday and surging as high as 3,951, up 0.4%, to a new all time high, buoyed by vaccine rollout optimism, while energy names soared on a brutal polar vortex roiling energy markets across much of the US.

Global equities are on course to rise for 11 straight sessions — the longest stretch since 2009 — and the Treasury yield curve has tested the steepest levels in more than five years. Investors are betting on U.S. government spending and vaccines to drive the economy out of the pandemic.

“The reflation trade is set to continue to gather steam with vaccine deployment and massive fiscal spending by the Biden administration,” said Esty Dwek, head of global market strategy for Natixis Investment Managers Solutions. “Yields are likely to rise further and the catch-up of cyclical sectors should continue.”

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