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Dow futures rise as stocks point to strong open on Monday

Buyers on the floor of the New York Stock Exchange.

Source: NYSE

U.S. stock futures moved higher in overnight trading and spiked to gains at the open on Monday, continuing last week’s rally that led the Dow and S&P 500 to record highs.

Dow futures go place 105 points. S&P 500 futures gained 0.25% and Nasdaq 100 futures rose 0.2%.

Stocks rose finish finally week with the Dow Jones Industrial Average rising 4% and the S&P 500 gaining 2.6%. The S&P 500 and the Dow both closed at transactions highs Friday.

The Nasdaq Composite advanced 3% last week, despite a sell-off on Friday spurred by snowball arising interest rates. The jump in bond yields has challenged growth stocks in recent weeks and sent investors into cyclical keeps of the market. The Nasdaq is up less than 1% this month, while the Dow and S&P are up 6% and 3.5%, respectively.

The U.S. 10-year Bank hit its highest level in more than a year on Friday. The benchmark Treasury note reached 1.642%, its highest smooth since February 2020.

The small-cap benchmark Russell 2000 surged more than 7% last week as investors wheeled into smaller stocks that benefit from a sharp economic comeback.

Last week, investors cheered the $1.9 trillion stimulus combine that President Joe Biden signed into law. The IRS started processing $1,400 direct payments on Friday and checks started striking bank accounts over the weekend. The bill will also put nearly $20 billion into Covid-19 vaccinations and $350 billion into testify, local and tribal government relief.

Investors will be gearing up for Tuesday and Wednesday’s Federal Open Market Council meeting where the Federal Reserve will deliver its decision on interest rates. The bond market in the coming week desire likely take its cues from the Federal Reserve.

The central bank is expected to acknowledge much better advance in the economy. Bond pros are also watching to see whether Fed officials will tweak their interest rate perspective, which now does not include any rate hikes through 2023.

Goldman Sachs chief economist David Kostin reproved clients on Sunday that he expects interest rates to continue to rise in the coming months and investors will experience to “continually grapple with the anxiety about economic overheating and Fed tightening.”

On the vaccine front, Biden announced conclusive week that he would direct states to make all adults eligible for the vaccine by May 1. Biden also set a ambition for Americans to be able to gather in person with their friends and loved ones in small groups to celebrate the Fourth of July.

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