Dow futures rise 150 factors because the Trump administration begins the transition course of
Traders work on the trading floor of the New York Stock Exchange.
Stock futures rose overnight Monday after a strong session on Wall Street boosted by positive vaccine news.
The futures on the Dow Jones Industrial Average gained 160 points. The S&P 500 futures rose 0.4% and the Nasdaq 100 futures rose 0.3%.
The surge in futures came after Emily Murphy, director of general services administration, told President-elect Joe Biden that the Trump administration is providing federal funding for his inauguration.
Trump tweeted that he agreed to move but said he would “continue the good fight” even if his re-election campaign has not yet won any legal victories that would invalidate the votes for Biden.
Stocks got off to a good start into Thanksgiving Week on Monday as investors rushed to reopen their stores amid bullish vaccine. The Dow rose more than 300 points for its best day in a week, while the S&P 500 rose 0.6%. The tech-heavy Nasdaq Composite lagged behind its performance with a gain of only 0.2%.
The small-cap Russell 2,000 rose 1.9% to another record high amid rotation into seedy businesses.
Investors welcomed more promising developments in the Covid-19 vaccine space. According to AstraZeneca, the interim analysis has shown that the vaccine has an average effectiveness of 70% based on strong results from Pfizer-BioNTech and Moderna.
Important averages hit session highs after it was announced that Joe Biden would appoint former Federal Reserve Chair Janet Yellen as Secretary of the Treasury. Many see Yellen as a market-friendly choice considering that it has overseen a long economic expansion at historically low interest rates and is likely to push for more fiscal stimulus.
“I think this is a strong sign that Biden will focus on rebuilding the economy rather than pursuing aggressive regulatory policies,” said Ed Mills, policy analyst with Raymond James in Washington. “She will be an effective voice for more fiscal support to someone who has been viewed as a partisan … I would say this is a positive move for the market, but especially for the economy as a whole.”
Still, investors weighed the vaccine news against a resurgence of new coronavirus cases, which led some Wall Street companies, including Goldman Sachs and JPMorgan, to lower their near-term economic outlook.
The US continues to have record levels of Covid-19 infections, according to a CNBC analysis of Johns Hopkins University data. The national seven-day average of the daily new cases is 170,855 on Sunday.
Investors will monitor a number of retailer returns before the holiday season, including Best Buy and Dick’s Sporting Goods before the Bell and Gap and Nordstrom after last Tuesday.
US markets are closed for Thanksgiving Thursday and have a brief session on Friday.
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