Stock futures open flat as Wall Street closes New Year


Traders work on the floor of the New York Stock Exchange.

NYSE

US stocks opened with flatlines Sunday night before the first session of 2021 after a volatile year of futures trading.

The Dow Jones Industrial Average Futures were down just 37 points or 0.1%. The S&P 500 and Nasdaq 100 futures closed down slightly.

Both the Dow and the S&P 500 closed at record highs on Thursday, the last trading day of 2020, to wrap up a year of surprisingly strong gains.

The 30-stock Dow ended last year with a gain of 7.3%, and the S&P 500 rose 16.3% at the time. At one point in 2020, the two market benchmarks were down more than 30% as the coronovirus epidemic ravaged the global economy.

The real deadlock of 2020 was the Nasdaq Composite, which rose 43.6% to its biggest one-year gain since 2009. The Nasdaq result came as investors and traders invested in tech stocks due to the Kovid-19 outbreak.

Unprecedented fiscal and monetary support for the economy – along with the development and rollout of several Kovid-19 vaccines – helped the market recover from a massive decline to trade back to its all-time high.

Mark Shakin, CEO of Chakin Analytics, wrote, “The stock market is based on the twin pillars of fiscal and monetary policy coordinated by the US Treasury and Federal Reserve Board in 2021 and a successful COVID vaccine rollout.” “However, we envision some bumps in the road along the way.”

The US rollout of several Kovid-19 vaccines has been slowed down recently due to supply constraints.

Monsef Salai, head of Operation Tana Speed, said Sunday that the US could rollout its vaccine by giving half a dose to a group of Americans of modern-day medicine. “We know that for a modern vaccine that gives half a dose to people between 18 and 55 years old … to a 100-microgram dose brings about the same immune response,” Saloi said.

The number of coronovirus cases in the US also continues to rise, raising concerns about the pace of economic recovery in 2021. Data compiled by Johns Hopkins University confirmed more than 20 million Kovid-19 infections in the US, as well as 1.8 million virus-related deaths worldwide. Several cases of a new coronavirus virus have been confirmed across the country.

Wall Street is also keeping an eye on Georgia as the state prepares for the Senate runoff election on Tuesday, which could give Democrats a majority in the Chamber.

“With the Georgia runoff elections on Tuesday and the Electoral College Drama on Wednesday, a pick is expected this week in two-way trade and short-term volatility,” Chikin said.

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