A pedestrian outside the New York Stock Exchange in New York, July 29, 2020.
Wang Ying | Xinhua News Agency | Getty Images
US stock futures fell Sunday evening as investors prepared for a busy week of corporate earnings and watched Washington stimulus negotiations.
The futures for the Dow Jones Industrial Average and the S&P 500 lost around 0.2%, while those for the Nasdaq 100 were unchanged.
Futures weakness follows a strong week for the stock market. The Dow was up 3.3% and posted its biggest gain in a week since August, while the S&P 500 and Nasdaq Composite rose 3.8% and 4.6%, respectively, for their best weeks since July.
"Last week's markets seemed to increase perceived clarity of choice and thus the likelihood of additional fiscal stimulus – at least in the pipeline. This was reflected in the outperformance of small cap versus rising government bond yields," said Julian Emanuel, chief equity and Derivatives from BTIG strategist said in a note to customers Sunday.
However, the chances of another round of pre-election incentives seemed to worsen over the weekend when both House Speaker Nancy Pelosi, D-Calif., And Senate Republicans received a 1.8 trillion White House offer Dollars pushed back.
In a letter to colleagues, Pelosi emphasized that their offers were insufficient on health issues.
"The news is filled with numbers in dollars. The crux of the matter is, can we let the virus rage on science and ignore it as the government is suggesting, or will they accept the scientific strategic plan in the Heroes Act to make it happen to destroy?" the virus, "Pelosi said, referring to a bill that the Democrats had already passed in the House.
Meanwhile, Treasury Secretary Steven Mnuchin and White House Chief of Staff Mark Meadows called for a separate vote on the paycheck protection program in their own letter to Congress on Sunday.
The apparent dead ends follow a whirlwind week in Washington in which President Donald Trump once broke off negotiations, saying Congressional Republicans should focus on reassigning Amy Coney Barrett to the vacant Supreme Court seat. Trump then reversed his position and said he should "make it big" in negotiations.
In Monday's session, investors and traders could also adjust their positions before the third quarter earnings season shifts into high gear later in the week. Several major banks and airlines are expected to release their results, including JPMorgan Chase and Delta Air Lines on Tuesday.
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