Futures stock exchange index of the United States (US) strengthened in trading Monday (15/3/2021), suggesting that the record-high action will be repeated in the first trade earlier this week.
The Dow Jones Industrial Average futures contract rose 48 points (+ 0.1%). Indicating that the stock exchange’s benchmark index will open up. However, similar contracts for the S&P 500 and Nasdaq compact fell by 0.1%.
Stocks that have benefited from the economic recovery rose in the pre-opening session. American Airlines and United Airlines compacted up more than 2%, followed by shares of Boeing, Gap.And also several shares of energy companies.
“Investors must continue to overcome the anxiety surrounding the overheated economy and the tightening of Fed policy in recent weeks,” wrote David Kostin, Goldman’s Chief Stock Planner in a research report quoted by CNBC International.
David believes that the stock market valuation is sufficient to offset the 10-year US government bond yields of around 2%, so this should not trigger excessive concerns about the performance of listed companies on Wall Street.
Dow Jones Had Touched the Highest Level
Last week, the Dow Jones shot 4%, followed by the S&P 500 which skyrocketed 2.6%. Both touched record highs last Friday. The Nasdaq gained 3% while Russell 2000 jumped 7%. Throughout March the Dow Jones rose 6%, the S&P 500 grew 3.5%, the Nasdaq only rose nearly 1%.
The Federal Open Market Committee (FOMC) is scheduled to hold meetings on March 16 and 17. Its agenda to determine benchmark interest rates. The meeting was held after US President Joe Biden signed a total stimulus value of US $ 1.9 trillion.
Following the approval of the US $ 1.9 trillion fiscal stimulus. Including $1,400 cash direct assistance to US citizens. The Fed is predicted to be more optimistic and raise its economic growth target for 2021.
The bond market will monitor the Fed’s policy results. with the expectation that there will be an increase in the benchmark interest rate. The yield on the benchmark bond has risen first, and last Friday touched the level of 1.642%.
From a vaccination standpoint, Biden announced that all adults in the US will get vaccinated by May 1. And even targeted crowd activity to start in conjunction with the commemoration of US Independence Day on July 4.