Traders on the New York Stock Exchange.
Source: New York Stock Exchange
US stock futures rallied Monday night as Wall Street appeared to be recovering from a difficult week leading up to President-elect Joe Biden’s inauguration.
Futures contracts linked to the Dow Jones Industrial Average were up 140 points, or 0.5%. Those for the S&P 500 and the Nasdaq 100 added 0.6%.
The move in futures comes after the stock fell last week. The Nasdaq Composite and S&P 500 lost 1.5%, while the Dow fell 0.9%, respectively. It was the worst week for the three major indexes since October.
The disappointing week for equities came when Biden unveiled its $ 1.9 trillion economic aid plan as the country tries to contain the Covid-19 pandemic. Biden will be inaugurated with the National Guard in Washington on Wednesday amid heightened security concerns following a riot at the Capitol on Jan. 6.
“Over the next week, global economic data and US earnings reports will be plentiful, but what matters is whether President Elect Biden’s inauguration on 1/20 goes peacefully and whether Senate Republicans are sending signals of constructive cooperation or of a repeat in 2020” Julian Emanuel, BTIG’s chief equity and derivatives strategist, said in a note to clients on Sunday.
Janet Yellen, Biden’s designated candidate for Treasury Secretary and former Federal Reserve Chairman, will appear before the Senate Treasury Committee Tuesday. Yellen’s prepared remarks call on the federal government to “act big.”
Tuesday also starts a tough week of earnings. Bank of America and Goldman Sachs will report their fourth-quarter results before the bell, with Netflix’s numbers after the market has closed.
The earnings season got off to a sour start last week. JPMorgan Chase, Wells Fargo and Citigroup shares lost ground on Friday after their earnings reports. JPMorgan beat Wall Street estimates at the top and bottom, but Wells Fargo and Citi missed revenue expectations.
The US stock market was closed Monday in honor of Martin Luther King Jr. Day.