Wall Street set to open more on optimism over economic recovery

(Reuters) – Wall Street’s main indices were set to open higher on Friday as investors bet on more official stimulus to bring economic reforms one after another, even as COVID-19’s The house saw another record increase in cases.

FILE PHOTO: Traders wear masks while working on the floor of the New York Stock Exchange as the outbreak of coronavirus disease (COVID-19) continues until May 27, 2020 in the Manhattan Borough of New York, USA. REUTERS / Lucas Jackson

Blackrock Inc., the world’s largest asset manager, jumped 1.8% in prepaid trading after news of a surge in quarterly profits as investors poured money into their fixed-income funds and cash management services.

As the second quarter earnings season gets underway, investors are looking for a recovery path for Corporate America. Unprecedented stimulus measures and improvement in economic data have helped the S&P 500 grow to within 5% of February’s record high.

Investors are also expecting more financial support, as a program that provides additional unemployment benefits is scheduled to end on 31 July. The US Congress will return to Washington on Monday to fight over the next coronovirus aid bill.

Republicans and Democrats go back and forth, “It’s going to be a mess in the next few weeks.” I suspect they are probably going to settle for close to one and a half to two trillion in fiscal stimulus, ”said David Bansen, Chief Investment Officer, The Buensen Group, based in Newport Beach, California.

At 8:21 am, e-minis was up 157 points or 0.59%. The S&P 500 E-Minis was up 21.5 points or 0.67% and the Nasdaq 100 E-Minis up 115.75 points or 1.1%.

The S&P 500 and the Dow have risen this week after promising data on the COVID-19 vaccine helped investors see a record-breaking increase in coronavirus cases in the United States.

In contrast Nasdaq is down about 1.4% since last Friday’s record closing, as investors swung technology stocks and moved into cyclical sectors.

“These technology stocks are widely overvalued and the inevitable rollover of big technology to more value-oriented sectors is in the very early innings,” he said. I expect very tough patches for big technology for the rest of the year.

Shedding 8.3%, after Netflix Inc. forecast its subscriber growth during the coronavirus virus epidemic, Wall Street would be even slower than expected during the third quarter.

United Airlines said a 0.9% increase as it reached an agreement with its pilots’ union in two separate packages aimed at reducing involuntary furloughs in the fall and to meet demand for coronovirus-hits The pilots have to be prepared for

Reporting by Devik Jain and Medha Singh in Bengaluru; Editing by Maju Samuel

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