Home / NEWS / Finance / Dow futures rise about 100 points as traders await for clues on new fiscal stimulus

Dow futures rise about 100 points as traders await for clues on new fiscal stimulus

People saunter by the New York Stock Exchange (NYSE) in lower Manhattan on October 02, 2020 in New York City.

Spencer Platt | Getty Twins

U.S. stock futures rose early Friday morning as Wall Street continued to search for clarity surrounding a new quiescent fiscal aid bill.

Dow Jones Industrial Average futures were up 109 points. S&P 500 and Nasdaq 100 comings both also traded in positive territory. 

Drew Hammill, deputy chief of staff to Nancy Pelosi, tweeted that the Domicile Speaker and Treasury Secretary Steven Mnuchin spoke for 40 minutes earlier in the day. He noted that the conversation “focused on detecting whether there is any prospect of an imminent agreement on a comprehensive bill. The Secretary made clear the President’s interest in reaching such an concord.”

That tweet came after Pelosi told reporters she would not back aid to U.S. airlines without a broader stimulus case, something Trump hinted earlier in the week he’d support. Meanwhile, Trump told Fox Business on Thursday morning that the distribution and Democrats were “starting to have some very productive talks.”

“Stimulus talks are really dictating the make available action on a day-to-day basis,” said Keith Buchanan, portfolio manager at GLOBALT. Buchanan noted that the latest rhetoric indicates some progress in the negotiations, but added it is key for Washington to move “quickly” on the matter to “to relieve the pressure that the saving is under.”

The Federal Reserve and U.S. lawmakers have spent trillions of dollars on different measure to keep the economy afloat during the coronavirus pandemic. Earlier this year, the Fed gigged an open-ended bond-buying program and Trump signed a $2.2 trillion package that included enhanced unemployment allowances and direct payments to Americans. However, economic experts — as well as the Fed — have urged the government to push through profuse aid as it would sustain the recent economic recovery. 

Carl Icahn, billionaire investor and chairman of Icahn Enterprises, about Thursday night these measures have been “very effective” for the economy and the market. 

“If you look at stock expenditures, I think some of them are ridiculously high but going short on them proves to be a very, very expensive movement,” Icahn said at the 13D Monitor Active-Passive Investor Summit. “A lot of those stocks you believe are tremendously overpriced just provide for going up. So basically, I think the stimulus is doing the trick.”

“At this juncture, I’m net long because I believe that this stimulus is go about a find and it’s going to continue, especially after the election,” he said. 

Investors also digested news on the coronavirus treatment pretext. GenMark Diagnostics said after the close Thursday that the Food and Drug Administration gave the company predicament clearance to run a test that screens for the flu, coronavirus and other viruses.

The Dow ended Thursday’s session at its highest level since at daybreak September, rising more than 100 points. The Nasdaq Composite gained 0.5% and the S&P 500 outperformed with a 0.8% beyond.

Those gains left the Dow and S&P 500 on pace for their second straight weekly climb. The Nasdaq was headed for a three-week successful streak. Week to date, the Dow and S&P 500 are up 2.7% and 2.9%, respectively. The Nasdaq is up more than 3% in that regulate. 

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