How Economic and Stimulus Bill Affected Dow Futures
The coronavirus pandemic created a lot of challenges all over the world. Interestingly, Dow futures rose in early premarket trading, expanding Monday’s 300 point rally. It is worth mentioning that, Dow Jones Industrial Average futures pointed to an opening gain of nearly 200 points. This is not the end of the story as S&P 500 futures and Nasdaq 100 futures were also higher.
As a reminder, on March 8, the Dow added more than 300 points thanks to investor optimism about the economic comeback from the pandemic. Interestingly, at its session high, the 30-stock average was up as much as 650 points to reach an intraday record.
Dow futures and coronavirus pandemic
It is worth noting that, Senate passed a $1.9 trillion economic relief and stimulus bill on Saturday. The bullishness was fueled in part by this decision.
Interestingly, the Democratic-held House aims to pass the bill on Tuesday and send it to President Joe Biden for his signature before a March 14 deadline to renew unemployment aid programs. As a reminder, the Senate approved the plan in a 50-49 party line vote. Unsurprisingly, Republicans questioned the need for another broad spending package.
People should take into account that, the package also includes $14 billion in payroll support for U.S. airlines, the third round of federal aid for the industry decimated by the pandemic. Furthermore, airline contractors will also benefit from the economic relief and stimulus bill.
Interestingly, senators passed the bill through budget reconciliation. This process required no Republican support but every Democratic vote. It was not easy to reach a deal inside the party.
Moreover, the Centers for Disease Control and Prevention also made an important announcement. According to this announcement, people who received both doses of vaccine can meet safely indoors without masks.
Interestingly, the technology stocks continued their recent weakness as the Nasdaq Composite fell 2.4%. The tech-heavy benchmark closed more than 10% below its February 12 closing high and fact underlines the seriousness of the situation.
On Monday, the S&P 500 dropped 0.5%, dragged down by shares of Tesla, PayPal, Easy as well as Advanced Micro Devices.
As can be seen from the information stated above, Dow futures rose in early premarket trading, extending Monday’s 300 point rally. The bill approved by the Senate helped to boost Dow futures. Millions of Americans are struggling to cope with financial problems and politicians should pay more attention to such problems.
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