US stock index futures held steady during overnight trading on Thursday as the main averages closed at new highs.
Futures contracts linked to the Dow Jones Industrial Average fell 5 points. S&P 500 futures and Nasdaq 100 futures were unchanged.
The main averages came from a record session, with all three indexes 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 hit both intraday and record close heights, at 0.58% and 0.84% respectively.
The leg came higher amid optimism about Covid vaccines, as well as hopes that Washington will soon reach an agreement on additional stimulus measures.
Leaders on Capitol Hill said they are close to an agreement that would bring in $ 900 billion in additional aid. The talks, which have lasted for months, are running head-on, with federal funding ending Saturday at 12:01 a.m. ET.
Senate Leader Mitch McConnell, R-Ky., Said on Thursday that a “two-pronged, bicameral agreement appears to be near”. He noted that it was “very likely” that Congress would work through the weekend, and said lawmakers may need to take a short-term funding measure to buy enough time to pass legislation.
House Speaker Nancy Pelosi, D-Calif., Also said the Democrats were getting closer to a consensus. “We made some progress this morning” and “await a response,” she told reporters on Thursday.
The stock gains on Thursday came despite a rise in the number of Covid cases, as well as disappointing economic data. Last week, the total number of unemployment claims was 885,000, the highest level since the beginning of September and above the expected circulation of 808,000. Meanwhile, data released Wednesday showed retail sales fell 1.1% in November, ahead of the 0.3% drop expected by economists.
“The bad news this week is that the third wave is getting worse and the economic damage from the pandemic continues to increase,” said Brad McMillan, chief investment officer at Commonwealth Financial Network. “The good news is that policies are starting to succeed to contain the virus, and the federal government is likely to pass a stimulus bill, mitigating both major risk factors.”
McMillan said investors should expect more volatility in the near term amid stimulus and vaccine developments before the economy grows back in 2021. pandemic, and markets are recognizing that, ”he added.
On Thursday night, advisers to the Food and Drug Administration overwhelmingly supported Moderna’s Covid vaccine, a major step toward FDA approval for public distribution.
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