U.S. stock futures were flat in overnight trading after the S&P 500 lost a three-day climb.
Dow futures rose 46 points. S&P 500 futures and Nasdaq 100 futures gained 0.12% and 0.1%, respectively.
On Tuesday, the Dow Jones industrial average lost 200 points, despite a 2.9% jump in Apple stock. The S&P 500 slipped 0.2% for the third day of losses. Travel-related stocks under pressure have come amid major concerns about the new type of coronavirus from the UK
Equalities slipped despite Congress passing a $ 900 billion bill in distributed aid after months of neglect. To be sure, investors could take a profit after a strong stock return in 2020 as the end of the year approaches.
The package includes additional unearned benefits, more loans for small businesses, direct payments of $ 600 and money to distribute Covid-19 vaccines, among other provisions. President Donald Trump is expected to sign the bill into law in the coming days.
The “stock market action reinforces the old adage of buying the rumor (of another stimulus package) and selling on the news,” Jim Paulsen, chief investment strategy at Leuthold Group, told CNBC. “Over the past couple of days, stocks have been volatile with another $ 900 billion of fiscal relief. Despite increased fiscal assistance, leadership in the S&P 500 has returned to technology and away from cycling.”
The Nasdaq Composite was a high-performance Tuesday, closing up 0.5% at a new record as Amazon, Apple and Microsoft all closed higher. The Peloton stationery bike company raised 11%.
The Russell 2000 small-cap benchmark rose 0.99% to finish at a record. Small caps are up 105.94%, more than doubling the lows in March.
“The big winner, however, is small cap stocks that are likely to rise recently with or without the expectation of additional stimulus,” Paulsen said. “Bicycles and in particular international stocks were hit today by a sharp rise in the U.S. dollar reversing some of the recent weakness.”
Despite recent fiscal support, millions of Americans are still struggling to find work as the pandemic rallies their workers.
Last week’s jobless claims numbers will come out on Wednesday at 8:30 am ET. Economists surveyed by Dow Jones are expected to file 888,000 Americans for unemployment last week, more than 885,000 the previous week.
The U.S. reports at least 215,400 new Covid-19 cases and at least 2,600 virus-related deaths per day, based on a seven-day average measured by CNBC using Johns Hopkins University data.
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