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Equity futures remain largely unchanged as Wall Street awaits clarity from Washington

In Tuesday night trading, US stock index futures remained largely unchanged after a session of alternating rising and falling stock prices.

Futures contracts related to the Dow Jones Industrial Average fell 20 points. S & P 500 futures and Nasdaq 100 futures each fell 0.09%.

Stocks changed little on Tuesday as traders digested higher rates, possible additional stimuli and political turmoil.

The Dow Jones Industrial Average rose 60 points (0.2%) to 31,068.69. The Nasdaq Composite rose 0.3% and the S & P 500 rose slightly to 3,801.19. Meanwhile, the benchmark 10-year government bond yield temporarily traded at 1.18%, the highest level since March.

Credit Suisse has encouraged investors to support business cycle-promoting sectors such as finance and energy in response to this rise. However, rising interest rates could hurt growth stocks, and many tech giants, including Facebook and Apple, declined during the session on Tuesday.

Expectations for additional fiscal stimulus are one of the reasons behind the steady rise in yields. Presidential election Joe Biden will announce details of his economic plan on Thursday.

Jason Draho, Head of the Americas for UBS Global Wealth Management, said: Asset allocation.

After the mute session on Tuesday and the week after the slide on Monday, the key average remains low. The Nasdaq Composite has relatively poor performance, declining by about 1% in the last two sessions. However, small caps are a bright spot, with Russell 2000 up 1.7% so far this week.

This move will occur as Washington’s turmoil continues. The Democratic House of Representatives will vote Tuesday night for a resolution calling on Vice President Mike Pence and the Cabinet to implement a 25th amendment to drive Trump out of the White House.

Covid cases continue to grow in the United States and abroad. The United States records at least 248,650 new Covid-19 cases and at least 3,223 virus-related deaths daily, based on a 7-day average calculated by CNBC using data from Johns Hopkins University.

Still, many say the United States is ready to return to growth later this year.

Brent Schütte, Chief Investment Strategist at Northwestern Mutual Wealth Management, said: “Stagnation of demand in the COVID-19-affected industry … and the necessary inventory restructuring should further drive employment growth,” he added.

In summary, Schütte said this set the stage for above-average economic growth and saw stocks rise to new highs.

–Jacob Pramuk from CNBC contributed to the report.

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Equity futures remain largely unchanged as Wall Street awaits clarity from Washington

Source link Equity futures remain largely unchanged as Wall Street awaits clarity from Washington

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