U.S. stock index futures were slightly lower in overnight trading on Thursday, after major averages closed at new highs.
Dow Jones industrial average futures contracts fell 29 points. S&P 500 futures declined 0.06%, and Nasdaq 100 futures fell 0.07%.
The major averages were coming off a chart setting session, in which all three indices were closing at new highs. During regular trading hours the Dow advanced 148 points for a gain of 0.49%. The S&P 500 and Nasdaq Composite both hit high intraday and closing levels, gaining 0.58% and 0.84%, respectively.
The leg came higher amid hopes surrounding Covid vaccines, as well as the hope that Washington will reach a consensus on further stimulus measures.
Leaders on Capitol Hill said they are close to an agreement that would provide $ 900 billion in additional support. Negotiations, which have stretched for months, are against the wire, with federal funding down at 12:01 am ET Saturday.
Senate Majority Leader Mitch McConnell, R-Ky., Said Thursday that there appears to be “a bipartisan, bicameral agreement nearby.” He noted that it was “very likely” that Congress would work over the weekend, and said that lawyers might have to go through a short-term funding phase to buy enough time. to pass legislation.
House Speaker Nancy Pelosi, D-Calif., Also said Democrats were moving closer to a consensus. “We made some progress this morning” and “are waiting to hear back,” she told reporters on Thursday.
Stock jumped higher on Thursday despite a rise in Covid cases, as well as disappointing economic data. Unemployment claims totaled 885,000 last week, hitting a record high in early September, and coming in above expected expectations. of 808,000. Meanwhile, data released Wednesday showed that retail sales fell 1.1% in November, more than the 0.3% decline economists had expected.
“The bad news this week is that the third wave is getting worse, and the economic damage from the pandemic continues to rise,” said Brad McMillan, chief investment officer at Finance Network UK. Commonwealth. ”The good news is that policy is starting to succeed with the introduction of the virus, and the federal government is likely to pass an incentive bill, mitigation of the two main risk factors. “
McMillan said investors should expect more short-term volatility amid developments on stimulus and vaccine fronts, before the economy returns to growth in 2021. “With vaccines now available and ramping up , we are at the beginning of the pandemic, and markets are recognizing that, “he said.
On Thursday night, Food and Drug Administration consultants strongly supported the Moderna Covid vaccine, a key step toward public FDA approval of a release.
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