U.S. stock futures continue to rise

Published On: January 7, 2021Categories: Stocks & Shares1.3 min read

S&P 500 futures added 0.6% and Nasdaq 100 futures gained 0.9%

U.S. stock futures rose in overnight trading on Wednesday as investors digested the likely event of a Democratic held Congress and continued to look past riots at the U.S. Capitol.

Dow Jones Industrial average futures rose 125 points. S&P 500 futures gained 0.6% and Nasdaq 100 futures added 0.9%.

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. Senate Majority Leader Mitch McConnell said the Senate will certify the winner of the 2020 election Wednesday night.

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.

The Dow Jones Industrial Average climbed more than 400 points or 1.4% to close at a record high. The S&P 500 rose 0.57%, hitting an intraday all-time high during the session. The two averages closed off their highs amid the riots however.

The Nasdaq Composite was the relative underperformer, dipping 0.6% as Facebook, Amazon, Apple, Netflix and Google-parent Alphabet all closed lower.

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.

About the Author: Jonathan Adams

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