Brian R. Smith | Reuters
US stock futures opened flat on Sunday night after President Donald Trump signed several executive orders aimed at providing coronovirus relief.
Those orders continue to distribute extended unemployment benefits, postpone student loan payments through 2020, extend a federal moratorium on expulsions and provide payroll tax holidays. However, unemployment benefits will continue at a reduced rate of $ 400 per week. Originally, employees provided benefits benefit from epidemics affecting $ 600 per week.
Trump’s move came after congressional leaders failed to make progress on a new coronovirus stimulus package last week. Many benefit from the package already signed in late July, increasing uncertainty about the US economy moving forward.
“The fiscal cliff still represents a downside risk for August,” said Jefferies chief financial economist Anita Markowska. Markowska said, however, that any weakness from it would be “short-lived”.
“By September, another round of fiscal support will create positive momentum. The reopening of schools, even if only in some states, will reinforce the positive momentum (1) promote back-to-school shopping and (2) more Will allow parents. Return to work in September, “she said in a note to customers.” Bottom line, all the stars are lining up for another inflection point in activity and a second leg in reopening. ”
Wall Street was coming off a strong weekly performance. The Dow climbed 3.8% last week for the biggest weekly gain since June. The S&P 500 climbed 2.5% with the Nasdaq Composite. Last week’s gains stem from the worst three-month stretch for the S&P 500 as of August, during a historically difficult time for the market.
Those gains were led by Facebook, Apple and Microsoft, all of which rose more than 3% last week. He also dropped the S&P 500 by just 1.2% from his February 19 record.
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