US stock index futures rallied during overnight trading Wednesday as stocks appeared to build on the momentum of February.
Futures contracts linked to the Dow got 34 points or 0.09%. S&P 500 futures and Nasdaq 100 futures were up 0.06% and 0.07%, respectively.
The move comes after the Dow is up 63 points during regular trading hours to close at a record high. In a volatile session that saw the 30-stock average swing between gains and losses, the Dow also hit its ninth intraday record of the year.
The S&P 500 and Nasdaq Composite also hit record highs during Wednesday’s session, but the indexes ultimately failed to hold on to those gains. The S&P closed 0.03% lower, while the Nasdaq fell 0.25%.
Federal Reserve Chairman Jerome Powell said on Wednesday that the economy faces challenges in the labor market, so monetary policy must remain “patiently accommodative”. In comments to the Economic Club of New York, Powell said the employment picture is “ a long way ” from where it needs to be.
“Powell stuck to his guns today,” said Ryan Detrick, Chief Market Strategist, LPL. “With many worried about too much stimulus and higher inflation, he is more concerned about a persistent employment picture. The truth is that low rates remain for the time being and today’s speech has changed little about that,” he added. to it.
For the week, all three major averages are higher and on track to post their second positive week in a row. Although it is still early in the month, the indexes for February are also higher. The Russell 2000 continues to attract attention, with the small cap index so far outperforming the S&P for the week, month and year.
In Washington, stimulus talks are underway, with investors expecting any additional measures to further support stocks.
“The markets expect a great deal of stimulus to be pumped into the economy,” said Scott Wren, senior global market strategist at Wells Fargo Investment Institute. “We believe that additional incentives are needed to help the economy and consumers bridge the gap between now and when vaccines are more widely administered and lockdowns lifted,” he added.
Thursday continues a busy week with income. PepsiCo, Kraft Heinz and Kellogg are among the names that will report before the market opens. Disney and Expedia will give their quarterly reports after the call on Thursday.
Of the S&P 500 components that have reported gains to date, more than 80% exceed Wall Street expectations, according to CNBC analysis.
“As we move through February, we see states reopening, the virus declining and vaccinations rapidly spreading. Looking back, we saw jobs declined, layoffs rose and confidence declined,” said Brad McMillan, chief investment officer of Commonwealth Financial Network.
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