Unfazed Stocks Future: U.S. Stocks are seen opening flat despite Investors optimism of a looming Global Economic Recovery.
U.S. stocks opened largely unchanged earlier today, remaining near record levels despite rising investor optimism over the economic recovery as Covid-19 vaccination program increases.
At 12:05 GMT, the Dow Futures contract was up 8 points, or 0.03%, S&P 500 Futures traded 1 points, or 0.01%, lower, and Nasdaq 100 Futures dropped 18 points, or 0.1%.
The Dow Jones Industrial Average closed at a record high yesterday, its eighth record high this year. The S&P 500, meanwhile, fell 0.1%, while the Nasdaq Composite dipped 0.3%, with these two indices closing not far below record levels.
The Stock markets have largely benefited from the expectation of Biden’s $1.9 trillion COVID relief stimulus bill this month, while the US government also announced its plans to acquire an additional 200 million doses of Covid-19 vaccines, enough to vaccinate most Americans by summer.
Despite today’s stock movement, the U.S. stock markets have posted strong gains very quickly in recent times, and a 10% drop seems very plausible with markets balanced on a risk-reward basis.
With this in mind, investors will look carefully at the report of January’s Federal Open Market Committee meeting which is set to hold by 19:00 GMT. The report could provide clues as to how long the members of the Open Market Committee will expect the Central bank to retain its monetary policy.