Traders on the trading floor of the New York Stock Exchange.
Source: The New York Stock Exchange
Stock futures rallied overnight trading Thursday after Treasury Secretary Janet Yellen said a major Covid aid package is still needed for a full US recovery.
Futures on the Dow Jones Industrial Average gained 35 points. S&P 500 futures and Nasdaq 100 futures were both slightly higher.
After the bell on Thursday, Yellen told CNBC that more stimulus measures are needed, even though some economic data suggested a rapid rebound. She added that a $ 1.9 trillion stimulus deal could help the US return to full operation within a year.
“We think it is very important to have a large package [that] addresses the pain this has caused – 15 million Americans are behind on their rent, 24 million adults and 12 million children who don’t have enough to eat, small businesses failing, ”Yellen told CNBC’s Sara Eisen at a“ Closing Bell ” -interview.
“I think the price of doing too little is much higher than the price of something great. We think the longer-term benefits far outweigh the costs,” she added.
The record rally in the stock market appears to have eased as fears of rising rates and higher inflation creep in. The S&P 500 fell for the third straight day on Thursday after a worse-than-expected reading on unemployment claims and weak guidance from Walmart.
Many on Wall Street believe that the expectation for further fiscal stimulus and a smooth reopening must materialize in order to extend the market’s march.
“Much of our rationale for extra profits from here relies on the continued belief that the key drivers that helped bring the market to current levels will remain intact,” said Scott Wren, Wells Fargo’s senior global market strategist. , in a note. One of the drivers is “additional incentives from Congress that will help bridge the gap between now and when vaccines are widely distributed”.
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