Traders on the floor of the New York Stock Exchange.
US stock futures were higher early Thursday morning as Wall Street looked to build on a solid March following President Joe Biden’s infrastructure plan.
Futures linked to the Dow Jones Industrial Average gained 35 points. Meanwhile, those for the S&P 500 futures and Nasdaq 100 futures were trading in positive territory.
The quiet movement in the future came after Biden unveiled his trillion-dollar infrastructure proposal. The plan includes spending on roads and bridges and upgrading the green energy and water systems.
This is the second big spurt of spending from Biden’s presidency after signing a $ 1.9 trillion law on relief and incentives on March 11.
“With the American rescue plan, we are facing immediate emergencies. Now it is time for reconstruction,” said Biden on Wednesday.
Tech stocks outperformed industrial and construction companies on Wednesday, despite details of the plan’s introduction being known. This is a possible sign that the increase in funding has been priced in by the market. Recovery and cyclical stocks have done well since the start of the year as investors became more bullish on government spending and Covid vaccinations.
Bank of America equity strategist Savita Subramanian told CNBC’s Fast Money that the market may still have to digest the tax hikes included in the plan, creating potential headwinds for stocks.
“I think the market is factoring in the good news about infrastructure … I don’t think the market necessarily priced in the negatives. So we’re going to pay for it,” Subramanian said.
Wall Street ended March on a positive day for broader markets. The S&P 500 rose 0.36% on Wednesday, breaking a two-day losing streak, while the tech-heavy Nasdaq Composite rose 1.5%. These indices ended the month up 4.2% and 0.4% respectively.
The 30-share Dow fell slightly but ended the month up more than 6%.
On the earnings side, Micron’s shares rose in expanded trading after the chipmaker beat expectations for its second-quarter income statement.
Thursday morning will bring a huge amount of economic news, with weekly jobless claim dates from the Department of Labor and several sets of manufacturing and engineering to be released. Economists polled by Dow Jones have filed 674,000 initial jobless claims, which would represent a slight decrease from the previous report.