Aug. 2 (.) – The S&P 500 was poised to open near its all-time highs on Monday as a $ 1 trillion infrastructure bill raised hopes for further fiscal stimulus as investors took notice. in this week’s deluge of macroeconomic data to gauge the pace of the domestic rally.
On Sunday, the Senate unveiled the bipartisan plan to invest in roads, bridges, ports, high-speed Internet and other infrastructure, with some forecasting that the chamber could pass the biggest public works law in decades this week.
Stocks in infrastructure-related stocks like Caterpillar Inc were up in pre-market trading.
Billions of dollars of monetary and fiscal stimulus have pushed major Wall Street indices to record highs, while strong second-quarter corporate earnings led the S&P 500 to end its sixth consecutive monthly gain on Friday.
Signs of a steady economic recovery have also driven demand for so-called stocks, including industrials, energy and financials, but the recent spread of the Delta coronavirus variant has raised concerns of a further hit to growth.
“I don’t think investors are worried about the broader macroeconomic figures, even if they show signs of slowing down; the concern is the risk that the reopening is on hold due to the spread of the Delta variant, “said Dennis Dick, proprietary trader at Bright Trading LLC.
“People know that if things go wrong, the Federal Reserve will add more support.”
After the Fed stayed on a dovish policy last week, attention this week will turn to business activity data for Monday and Wednesday, while on Friday, the Labor Department will release its monthly employment report.
Economists expect nonfarm payrolls to have risen by 900,000 last month, up from 850,000 in June.
As of 8:18 a.m. ET, Dow e-minis were up 114 points, or 0.33%, S&P 500 e-minis were up 19.25 points, or 0.44%, and e-minis were up. the Nasdaq 100 were up 71.5 points, or 0.48%.
In a sign of recovery in global M&A activity, Square Inc, the payments company of Twitter Inc co-founder Jack Dorsey, said it would buy the pioneering Australian buy-now-pay-later company, Afterpay Ltd, for $ 29 billion. of dollars.
Afterpay’s shares, which are listed in Australia, rose 18.8%, while Square, which is listed in the United States, fell 4.4%.
Meanwhile, the rebound in corporate earnings and the recent drop in bond yields are helping to moderate valuations of US stocks, further reinforcing the desirability of owning stocks.
After last week’s mixed quarterly reports from tech giants, this week they’re focusing on earnings reports from companies like Eli Lilly and Co, CVS Health Corp, and General Motors Co.
Shares of public transportation companies Uber Technologies Inc. and Lyft Inc. rose about 1% ahead of their second-quarter results this week, in which investors will seek comment on how the current driver shortage and variance Delta are clouding the outlook for the year.
(Information from Sagarika Jaisinghani and Shashank Nayar in Bengaluru; Shounak Dasgupta edition) .. Translate serenitymarkets.com