U.S. stock futures moved higher in overnight trading and showed gains in the market on Wednesday after the S&P 500 closed lower for the first time in eight days.
The Dow futures rose by 70 points. Futures S&P 500 and Nasdaq-100 gained 0.27% and 0.5% respectively.
After the bell on Tuesday, President Donald Trump said the US government will buy 100 million doses of the Moderna experimental coronavirus vaccine, which is currently in human trials at a late stage.
Earlier, former Vice President and presidential candidate Joe Biden announced Sen. California̵7;s Kamala Harris will join him on the Democratic ticket.
A return to risk appetite following the encouragement of economic numbers and hopes for the new coronavirus aid package and even a vaccine boosted the 500-stock index for most of Tuesday’s trading day. However, the S&P 500 ended the day at 0.8% – occupying a seven-day winning streak – as technology stocks fell.
The S&P 500 has collected more than 52% since the low of March and is 1.8% of the record high.
Industrial Average Dow Jones plunged more than 100 points, but at one point traded over 28,000 for the first time since February. Shares benefiting from the reopening of the economy and a Covid-19 vaccine covered average losses.
The Nasdaq Composite was underperformer, losing 1.7% as investors swapped tech stocks. Netflix, Microsoft, Amazon, Facebook, Alphabet and Apple all close below.
The sentiment was strengthened earlier in the day after local news agencies reported that Russian President Vladimir Putin claimed the country had given regulatory approval for the world’s first Covid-19 vaccine.
“A combination of the S&P 500 Index making its first real attempt at a comprehensive record after seven days of driven progress, its old leadership – technology and FANNGs – continuing one last fighting trend and another day without an agreement, not even to renew talks in DC about a new stimulus package finally captured in the stock market, “Jim Paulsen, chief investment officer at Leuthold Group, told CNBC. “The first signs of trouble today brought many sales from anxious investors to block recent profits.”
Investors are also making uncertainty about a second coronavirus stimulus bill. Over the weekend, Trump signed four executive orders to extend some coronavirus assistance. Treasury Secretary Steven Mnuchin said Monday the White House is open to resuming coronavirus aid talks with Democrats and putting more relief money on the table to reach a compromise.
The Labor Department is set to release key inflation data on Wednesday at 8:30 a.m. ET. Economists surveyed by Dow Jones expect the consumer price index to rise 0.3% in July, after jumping 0.6% in June. The core CPI is expected to increase by 0.2%, or 1.2% on an annual basis, according to the Dow Jones.
Earnings seasons continue Wednesday with Cisco Systems, Lyft and SmileDirectClub all reporting behind closing bells.
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