The S&P 500 finished within 0.7% of its recent record close, the Dow also advanced, while the Nasdaq ended just below the flat line
Stock futures opened higher Wednesday evening, adding to gains from the regular session.
The S&P 500 rose for a third straight day on Wednesday and ended within 0.7% of its recent record close. The Dow also advanced, while the Nasdaq ended just a tick below the flat line to erase intraday gains. Shares of eBay surged 10% and shares of PayPal jumped 6% overnight after both companies reported fourth-quarter results and first-quarter guidance that handily beat estimates.
Investors largely shook off concerns over heightened volatility after last week’s Reddit-fuelled surge in beaten-down stocks like GameStop and AMC Entertainment. Instead, they fixed their attention back on corporate earnings results, and on more positive news on the vaccine and stimulus fronts out of Washington.
The Democratic Senate voted to move forward with a process to fast-track approval of some measures in Biden’s coronavirus virus relief proposal without needing Republican support, and the House of Representatives is also expected to adopt a similar move. And the Biden administration said this week it would begin sending COVID-19 vaccines directly to retail pharmacies, paving the way for a speedier national inoculation program.
I think certainly last week there was a lot of focus on more technical positioning factors for various stocks and that dominated the headlines. But if we look at the data, on the economic front from the vaccine or from the pandemic front broadly, the news was kind of good, certainly on the margin, Jason Draho, UBS head of asset allocation Americas, told Yahoo Finance.
Once the dust settled from last week, people are sort of pivoting back to those fundamentals, he added. Over the next six months, that’s our view that there are more tailwinds than there are headwinds. The headwinds are really, are we wrong about these variants? Could they be more risky than we expect? Could there be disruptions on the vaccines or do vaccinations pose a risk? But the fundamentals point upward right now.