By Francis Ogwo
There have been significant appreciation in U.S. stock at the first trading session of the week even as the futures markets indicated a rebound from a losing week.
This according to industry analysts is due the likely impact of the Covid-19 vaccine rollout on the world’s largest economy and the lingering COVID-19 stimulus deal ongoing in the U.S Congress.
Current data shows that Dow futures gained about 180 points. S&P 500 futures and Nasdaq 100 futures gained 0.55% and 0.45%, respectively.
This week’s figure was a sharp contrast to last week’s U.S stocks as it recorded its first down week in several, as U.S fiscal officials continued a standoff surrounding a Covid-19 stimulus deal.
At last week’s trading session, the S&P 500 dropped nearly 1%, for its first negative week in three. The Dow Jones Industrial Average lost about 0.57% for its first negative week in three and the Nasdaq Composite plunged by 0.7% for its first negative week in four.
American Stock futures are simply standardized contracts that global traders use in purchasing or selling the U.S stock at a future date. This means that the U.S stock futures give an insight into what global investors see before the market opens, or after it closes.
A speech was recently made by the Chief Global Market Strategist at Axi, Stephen Innes on the bearish results coming from the U.S stocks last week, coupled with the lingering U.S stimulus deal stalemate prevailing at U.S congress.
Innes said: “US equities fell on Friday as the US stimulus impasse, no-deal Brexit concerns, and the omnipresent rolling lockdown holiday siege weighed heavy on investors’ minds.
“So it seems we could be stuck in the positive vaccine then negative Covid-19 feedback loop waiting for a stimulus check to arrive.
“In truth, the headlines on the US fiscal stimulus are all too familiar. But there is little sign of any movement in resolving divisions over the primary components. Squabbling continues over government aid to the states and COVID-19 liability protection for businesses,” Innes added.
With the talks resonating since July, the U.S stock market may be bored in the near term, but if the stimulus door slams shut before Christmas, it could still change the positive vaccine music mood.
Recently a report by Eurasia group said Global equitable access to COVID-19 vaccines estimated to generate economic benefits of at least US$ 153 billion in 2020–21, and US$ 466 billion by 2025, in 10 major economies.
