US stock index futures rose in overnight trading on Sunday, as the key average was seen to accelerate gains after the best week since November.
The Dow-tied futures contract gained 75 points or 0.27%. S&P 500 futures were up 0.3%, while Nasdaq 100 futures advanced 0.33%.
The S&P 500 closed at record highs on Friday and marked its first straight positive session since August. The Dow is on its longest daily winning streak since August, while the Nasdaq Composite recorded its fourth positive season in five on Friday. The tech-heavy index also closed at record highs.
“We are still growing very rapidly in a bull market in the early stages of economic recovery,” Michael Stanley, chief US equity strategist at Morgan Stanley, said in a note on Sunday. “We continue to recommend shares to improve the economic backdrop as vaccines are distributed and normal activities resume,” he said.
All three major averages ended the week in green, with each posting its best week since November, with widespread stock accumulation leading to a lower-squeeze in leading stocks. Russell 2000, meanwhile, is on its longest daily winning streak since May, and gained 7.7% for its best weekly performance in June last week.
“Equity keeps grinding higher and is likely to be at the 4000 level for the S&P 500,” said Jessie O’Hara, chief market technician at MKM Partners. He said, “The trend continues to be positive … The severity of fluctuations must remain to attract fast money, but for the long term, the patient’s money will be held until the pullback develops. Happens.”
The Senate and House each passed a budget resolution on Friday that began the reconciliation process that would allow President Joe Biden’s $ 1.9 trillion rescue package to get through the Democratic-held Senate with a simple majority.
The package includes a $ 1,400 incentive check, supplemental unemployed benefits and a Kovid-19 vaccine and test funds.
Treasury Secretary Janet Yellen said Sunday that the US could return to full employment by 2022 if Biden’s stimulus plan is passed.
During an interview on CNN’s “Union”, Yellen said, “There is absolutely no reason why we should suffer from a long slow recovery.” “I hope that if this package is passed we will return to full employment next year.”
Meanwhile, another busy week of earnings, with 78 S&P 500 components, is on deck to report quarterly results. Names on the deck are Cisco, Twitter, Yelp, Uber, MGM, Mattel, GM, Coca-Cola and Disney.
On the coronovirus front, more infectious versions continue to spread throughout the U.S. On Friday, Virginia health officials reported the first case of a previously identified strain in the state’s South Africa. On Sunday, South Africa provided minimal efficacy to the distribution of AstraZeneca’s vaccine against previously identified strain in the country.
Vaccine rollout continues in the US. LPL Financial’s chief market strategist Ryan Detrick said, “Boots on the ground are becoming increasingly efficient in vaccine delivery, and positive test data have expressed hope that a third vaccine may soon be made available for emergency use. is.” “Apparently, a large proportion of the population, after receiving their vaccinations, can pick up economic activity and hire in hard-hit service jobs.”
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