U.S. stock index times rose in overnight trading on Sunday, as the big averages looked to accelerate gains after the best week since November.
Dow-linked futures contracts gained 75 points, or 0.27%. S&P 500 futures were 0.3% higher, while Nasdaq 100 futures were 0.33%.
The S&P 500 closed at a peak on Friday and posted its fifth straight positive session for the first time since August. The Dow is also on its longest daily-winning streak since August, with the Nasdaq Composite recording its fourth progressive session in five on Friday. The tech-heavy index also closed at a high level.
“We are still very much in the bull market in the early stages of a recovering economic recovery,” Michael Wilson, Morgan Stanley’s chief U.S. equities strategist, said in a note to clients Sunday. “We continue to recommend stocks with the most upside to an improving economic situation as vaccines are rolled out and normal activities resume,” he said. .
The three major averages ended the week in the green, with each posting the best week since November as fears of the shortfall in a handful of stocks led to wider market control . The Russell 2000, meanwhile, has climbed the longest daily climb since May, gaining 7.7% last week for its best weekly performance since June.
“Shares are still grinding higher and appear to be entering at the level of 4000 for the S&P 500,” said JC O’Hara, chief market technologist at MKM Partners. “Movements continue to be positive … The severity of the rise should attract cash quickly but the long term, patient money, will be kept on the sidelines until the pull develops back, “he said.
The Senate and House approved a budget resolution each Friday, beginning the mediation process that would allow President Joe Biden’s $ 1.9 trillion rescue package to pass through the Senate held by the Democrats with a simple majority.
The package includes $ 1,400 incentive studies, additional unemployment benefits and a Covid-19 vaccine and trial fund.
Finance Secretary Janet Yellen said Sunday that if Biden’s stimulus plan passes, the U.S. could return to full employment by 2022.
“There’s no reason why we should suffer through a slow recovery,” Yellen said in an interview on CNN’s “State of the Union”. “I would expect that if this package passes we will get back to full earnings next year.”
Meanwhile, another busy week of earning on deck with 78 S&P 500 parts is ready to report quarterly results. Deck names include Cisco, Twitter, Yelp, Uber, MGM, Mattel, GM, Coca-Cola and Disney.
As for coronavirus, more infectious changes are still spreading across the U.S. On Friday Virginia health officials reported the first case of the state first identified in South Africa. On Sunday South Africa suspended the spread of AstraZeneca vaccine due to its effectiveness against the pressure first identified in the country.
In the US, the distribution of the vaccine continues. “Boots on the ground are becoming increasingly effective in distributing the vaccine, and positive diagnostic data has spurred hope that a third vaccine will soon be available for emergency use,” Ryan said. Detrick, a key market strategist for LPL Financial. “Indeed, with a greater proportion of the population receiving their vaccines, economic activity can resume construction and employment in hard-service operations.”
Subscribe to CNBC PRO for unique insights and analysis, and live business day programs from around the world.