Traders and finance professionals work before the closing bell on the floor of the New York Stock Exchange.
Johannes Eisele | AFP | Getty Images
US stock futures rose on Sunday evening as traders were about to end the best August performance in the market since the 1980s.
The Dow Jones Industrial Average futures rose 141 points, or 0.5%. S&P 500 and Nasdaq 100 futures gained 0.5% and 0.6%, respectively.
The S&P 500 is up 7.2% since the start of the month, putting the broader market index on track for its biggest August gain since 1984. The Dow is up more than 8% this month and is also aiming for its best August since 36 Years.
This month's gains have set the S&P 500 to record levels and officially confirmed that a new bull market has begun. The Dow eliminated its 2020 losses on Friday, closing the session with a year-to-date gain of 0.4%.
The August rally built on the market's strong rebound from its March 23 lows. Since then, the Dow and S&P 500 have risen 57% and 60.1%, respectively.
We "were hoping the market would consolidate earnings since March 23rd and give earnings a chance to rebound," Ed Yardeni, president and chief investment strategist at Yardeni Research, said in a note. "However, Fed officials continue to drive stock prices higher by pledging to keep interest rates near zero for a very long time. As a result, they are driving the collapse of stock prices."
Earlier this year, the Federal Reserve cut rates to zero and launched a perpetual asset purchase program to help the economy through the coronavirus pandemic. Last week the central bank set an inflation policy framework that will keep interest rates low for longer.
In an obvious long-term bet on the global economy, Warren Buffett announced on Sunday that his conglomerate Berkshire Hathaway has acquired more than 5% stake in Japan's five leading retail companies. These companies are Itochu Corp., Marubeni Corp., Mitsubishi Corp., Mitsui & Co., and Sumitomo Corp. The five companies import everything from metals to food to Japan and provide services to manufacturers.
New Dow look
The Dow will start the week with three new constituents, and Apple has a much smaller impact on the 30-stock average.
Next Monday, Salesforce, Amgen and Honeywell will be added to the Dow, replacing the long-standing component Exxon Mobil, Pfizer and Raytheon Technologies. A 4-to-1 stock split from Apple will also take effect on Monday.
Traders will also look to Friday when the latest US job report is released. Economists polled by Dow Jones predict that 1.255 million jobs were created in August.
Subscribe to CNBC PRO for exclusive insights and analysis as well as live business day programs from around the world.