April 17, 2021

Global News Archive

News archives from around the world.

Stock futures rise, adding to Wednesday’s gains, despite turmoil at U.S. Capitol – CNBC

3 min read

U.S. stock futures rose on Thursday as Congress confirmed the election of Joe Biden as president. Gains were muted following a sizable rally on Wednesday.

Dow Jones Industrial average futures added 44 points, or 0.1%. S&P 500 futures rose 0.2% and Nasdaq 100 futures gained 0.4%.

On Wednesday, the Dow climbed more than 400 points or 1.4% to close at a record high as investors digested what a Democratic held Congress would mean for stocks and continued to look past riots at the U.S. Capitol. The S&P 500 rose 0.57%, hitting an intraday all-time high during the session.

During Wednesday’s trading session, markets were largely unaffected by the chaos in Washington caused by pro-Trump rioters at the U.S. Capitol. Lawmakers had just started the procedural process of counting the Electoral College votes and formally declaring President-elect Joe Biden the winner, when protesters stormed the chamber.

Wednesday evening, the Capitol building was secured and Congress reconvened to continue the process to confirm Biden’s win. That affirmation came early Thursday morning with the House of Representatives and the Senate rejecting efforts to object to the acceptance of the Electoral College votes from Arizona and Pennsylvania.

“The strength of the country is our institutions and our laws,” Ed Keon of QMA told CNBC. “Seeing this is disheartening but we will prevail and I think that’s the message of the markets.”

President Donald Trump said in a statement after the Congress confirmation of Biden that “there will be an orderly transition on January 20th.”

“I think the reason the markets aren’t too flummoxed is it’s not going to change the transition of power,” Tom Lee, Fundstrat Global Advisors co-founder, added.

On Wednesday, U.S. equities rose as Georgia’s Senate runoff election results rolled in. Minutes after the closing bell, NBC projected that Democrat Jon Ossoff defeated Republican David Perdue. This comes after NBC earlier projected Democrat Raphael Warnock defeated Republican Sen. Kelly Loeffler in their runoff.

Georgia’s election results create a 50-50 Senate that Democrats will control, due to the tiebreaking vote in Vice President-elect Kamala Harris. It is widely expected that a Democrat-held Senate would push for a more robust stimulus package, speculation which boosted equities on Wednesday, especially stocks hit hardest during the Covid recession.

Stocks on Wednesday closed off their highs slightly amid the riots in the Capitol.

The small cap benchmark Russell 2000 jumped nearly 4% to top the 2,050 level on hopes of further fiscal aid.

The 10-year Treasury yield broke above 1% for the first time since the pandemic-triggered rout in March late on Tuesday. The jump in yields triggered a rally in bank stocks on Wednesday.

Amid the chaos, cryptocurrency Bitcoin topped $36,000.

The Labor Department releases last week’s jobless claims at 8:30 a.m. on Thursday. Economists polled by Dow Jones are expecting 815,000 Americans filed for unemployment last week, compared to the previous week’s 787,000 claims.

Bed Bath & Beyond, Constellation Brands, Walgreens Boots Alliance and Conagra report quarterly earnings before the bell on Thursday. Chipmaker Micron reports after the bell.

Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.

Source Link

Leave a Reply

Copyright ©2016-2021 Global News Archive. All rights reserved.