US stock futures pick up on Friday, suggesting the S&P 500 is poised for its best week in three months, with investors at stake that a fresh coronavirus-relief spending package will bolster the economy.
Futures for the S&P 500 climbed 0.5%, indicating that broad market gauges may continue to rise after closing at record highs on Thursday. The benchmark is up more than 4% this week, on track for its biggest one-week gain since the week ended 6 November.
The technology-heavy Nasdaq-100 advanced contracted 0.4%, and tied Dow Jones Industrial Average 0.5% higher.
The market has stalled this week as President Biden stepped up efforts to pass a $ 1.9 trillion relief package. Democrats are using a special process to move forward on the stimulus bill: The Senate on Friday approved a budget plan that advances the reconciliation process needed to approve the aid plan by a simple majority in the Senate.
Fresh spending is considered important by many investors to spark the economy, with cases of coronovirus still high in parts of the US
“This will be a huge growth in the economy.” Said Edward Smith, head of asset allocation research at Rathbone Investment Management. “This definitely reduces any short-term risk as we wait for the vaccine rollout to fully gain momentum.”
The US jobs report for January, due at 8:30 pm ET, will show if the economy is picking up from the winter recession. According to economists, employers are expected to add 50,000 jobs last month. The closure of the trade caused the epidemic to drop for the first time in December. The unemployment rate is estimated to be stable at 6.7%.
Investors also focus on the rollout of Kovid-19 vaccines, which could accelerate the pace of economic recovery. Johnson & Johnson on Thursday asked US regulators to authorize the emergency use of its single-shot Kovid-19 vaccine, setting the stage for a possible third vaccine to be available in the US in a week.
“The more the vaccine is rolled out, the more people are going to start moving around,” said Gregory Purden, Arbuthnot Letham, co-chief investment officer at the private bank.
Johnson & Johnson shares rose more than 2% premarket.
After climbing to its highest level since late October in late January, markets have also reduced volatility this week. Spike injects money into a handful of stocks as individual investors on online forums, leading to frenzied trading and a sharp rise in prices. The Kobe Volatility Index, a grassroot of widespread US stock market unrest, fell to 22 on Friday, up from 37 the previous week.
Those heavily traded stocks have lost their steam, with GameStop sheding nearly 84% of its value so far this week while AMC Entertainment Holdings lost 46%.
The popular trading app Robinhood Markets lifted its trading limits on shares of both companies, according to its website. Gametop grew by more than 4% in prepaid trading, while AMC grew nearly 3%.
In bond markets, the yield on the 10-year Treasury note ticked 1.140% since March 2020 to close at 1.162%, its highest closing level on Thursday. Yields fall when prices rise.
Foreign, all-continental Stokes Europe 600 advanced 0.4%. Shares of French bank BNP Paribas rose more than 3%, followed by a more than slight drop in profits.
In Asia, most of the major benchmarks advanced close to trading. Japan’s Nikkei 225 closed up 1.5% and South Korea’s Kospi index rose 1.1%. Hong Kong’s Hang Seng climbed 0.6%. The Shanghai Composite of China reported a decline of 0.2%.
write to Caitlin Ostroff at [email protected]
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