As Pelosi Increases Stock Futures, Menuchins Work Towards Incentive Deals

US House Speaker Nancy Pelosi (D-CA) attends a news conference on October 1, 2020 at the US Capitol in Washington.

Erin Scott | Reuters

US stock futures for a new fiscal stimulus deal from Washington went ahead on Monday evening.

Dow Jones Industrial Average’s futures contracts gained nearly 100 points, while the S&P 500 and Nasdaq 100 gained 0.4% and 0.5%, respectively.

According to Pelosi spokesman Drew Hammill, phone calls “futures continue to narrow their differences” after House Speaker Nancy Pelosi and Treasury Secretary Steven Menuchin to discuss another stimulus package Monday afternoon. The speaker said that Tuesday 3 November is the deadline to reach an agreement before the election.

The stock market suffered a wide decline during Monday’s session, with the Dow shed 410 points and both the S&P 500 and Nasdaq Composite losing just over 1.6%. All 11 S&P sectors finished in red. The recession marked the fourth day for the Dow and the S&P 500 in five days, while it was the fifth-straight negative session for the Tech-Heavy Nasdaq.

Stimulus negotiations have hung the market for months after key provisions from the CAR Act, which ended in late July. Since then, job growth has slowed but consumer spending continues to recover. However, some indicators have shown that the savings created by large-scale economic relief packages have started to run out.

House Democrats have passed two additional relief bills that gained no traction in the Republican-controlled Senate, which is rising to vote on a $ 500 billion targeted relief package this weekend. The most recent bill from House Democrats was $ 2.2 trillion, while White House counteroffers have raised about $ 1.9 trillion in recent weeks.

Volatile trading around corporate earnings can be seen in Tuesday’s session. Consumer products company Procter & Gamble will release the results before the bell, while Snap and streaming video giants will report after the Netflix market closes.


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