Stock futures jumped in trade late Thursday as traders looked at the details of President Joe Biden’s newly revealed stimulus offer and weighed the possibility that the package could advance rapidly through the. Congress
Contracts for the three major indexes were trading above the flat line Thursday evening, shaking off their declines during the normal trading day.Both the Dow and Nasdaq hit record highs during the previous day before closing lower.
Biden concluded his $ 1.9 trillion coronavirus relief proposal late Thursday, including additional relief measures to add provisions included in the $ 900 billion package that Congress passed when. December
Biden̵7;s proposal, which defines the American Rescue plan, seeks to offer a $ 1,400 stimulus pay to most Americans, increasing federal unemployment benefits raised $ 100 to $ 400 a week and extended through the end of September. And provides $ 350 billion in grants to state and local The government, which has been exempt from the latest Congress package. It also seeks to increase the minimum wage to $ 15 an hour and provide additional funds to schools and increase COVID-19 testing and vaccination, among other requirements.
The overall size of the package was largely in line with what investors had expected from the proposal and would receive just $ 2.2 trillion in relief from the Care Act last spring. Whether the package is actually making progress, in short, is the next big question for the market, some experts say.
“We have to distinguish between willingness and ability. I have no doubt that the incoming Biden management wants to be great. They want massive relief, they want to expand in infrastructure, they want to move forward in local and state governments, and with good reason, ”said Mohamed El-Erian, Queens College Chair at Cambridge University and Chief Economic Adviser at Cambridge University. Allianz told Yahoo Finance on Thursday, “but they have a razor-thin congress in the Senate. And getting through it is not easy There are also questions about the prosecution process, there are questions about nominations, having COVID.
“So I think the market is priced in a big package. That is in line with what the Biden administration wants to do, the question the market will have to deal with is whether it can, considering what the Senate has to look at over the coming weeks and months, he added.
However, support for financial markets and the economy came from many fronts during the outbreak, and several members of the Federal Reserve, for their part, have doubled their commitment to keeping crisis-era policies in place. Now Fed President Jerome Powell said during a webinar on Thursday that he believes the US economy is “far from our target” and “now is not the time to talk about an exit”. Fed thoughts on big things Epidemic Asset Purchase Project
6:01 PM ET Thursday: Stock futures open higher.
Here are the main moves in the market at 6:03 PM ET Thursday:
Futures S&P 500 (ES = F): 3,794.75, an increase of 3.5 points or 0.09%.
Dow Jones futures (YM = F): 30,932.00 increase 23 points or 0.07%
Futures Nasdaq (NQ = f): 12,918.75 An increase of 17.75 points or 0.14%.
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