Stock futures rose in overnight trading Tuesday as investors awaited the inauguration of President-elect Joe Biden.
The futures on the Dow Jones Industrial Average rose 75 points. S&P 500 futures gained 0.3% and Nasdaq 100 futures rose 0.5%.
Netflix surged more than 10% in expanded trading after the company saw strong subscriber growth and considered share buybacks. Netflix significantly exceeded estimates for net added subscribers worldwide, reporting 8.5 million versus 6.47 million analysts expected.
Biden will succeed President Donald Trump as the 46th President of the United States shortly after noon ET. His inaugural address will focus on the need to bring the country together after a violent uprising on Capitol Hill and amid extreme partisanship in Congress.
Investors will also be on the lookout for more information on Biden’s $ 1.9 trillion Covid-19 relief plan that was unveiled last week. On Tuesday, Janet Yellen, Biden’s nominee-designate for Treasury Secretary, advocated increased spending and urged lawmakers to “do big.”
“Anything else could take a back seat to the events in Washington as investors await big changes in policy and the prospect of a new administration,” said JJ Kinahan, chief market strategist for TD Ameritrade.
Wall Street started the week with modest gains. The Dow rose more than 100 points on Tuesday while the S&P 500 rose 0.8% and suffered a two-day loss. The Nasdaq Composite was up 1.5% as major technology stocks rebounded from last week’s heavy losses.
Biden’s stimulus proposal includes direct payments of $ 1,400 to most Americans, plus additional unemployment benefits, and state and local government aid. He also announced a comprehensive plan to fight the pandemic in the United States, which includes a nationwide vaccination campaign.
The US has fallen far short of its target of vaccinating 20 million people by the end of last year. While the Trump administration’s Operation Warp Speed dumped over 31.1 million doses nationwide, only 12.3 million people were vaccinated.
“I think there is a very bright light at the end of the tunnel. We just have to make it through the next few months,” said Kristina Hooper, Invesco’s Chief Global Market Strategist. “I expect markets will continue to move in anticipation of a robust recovery over the course of 2021 when the vaccines are widely used.”
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