Finance News

Inventory futures are rising as merchants await clues of recent fiscal stimulus

People walk past the New York Stock Exchange (NYSE) in Lower Manhattan on October 2, 2020 in New York City.

Spencer Platt | Getty Images

US stock futures rose Thursday night as Wall Street continued to seek clarity on new potential tax aid.

The Dow Jones Industrial Average futures rose 94 points, or 0.3%. S&P 500 and Nasdaq 100 futures gained 0.3% and 0.2%, respectively.

Nancy Pelosi deputy chief of staff Drew Hammill tweeted that House Speaker and Treasury Secretary Steven Mnuchin had spoken 40 minutes earlier. He noted that the conversation "focused on determining whether there was any prospect of an imminent agreement on a comprehensive bill. The secretary made it clear the President's interest in such an agreement."

That tweet came after Pelosi told reporters it would not support aid to U.S. airlines without a wider stimulus package, which Trump hinted at earlier the week that he would support. Meanwhile, Trump told Fox Business Thursday morning that the government and Democrats are "starting to have very productive talks."

"Stimulus talk really drives daily market action," said Keith Buchanan, portfolio manager at GLOBALT. Buchanan noted that recent rhetoric indicated some progress in the negotiations but added that it was vital for Washington to act "quickly" on this matter in order to "ease the pressure on the economy" .

Investors also digested news about coronavirus treatment. GenMark Diagnostics announced after last Thursday that the Food and Drug Administration gave the company emergency clearance to run a test that checks for flu, coronavirus and other viruses.

The Dow ended Thursday's session at its highest level since early September, rising more than 100 points. The Nasdaq Composite gained 0.5% and the S&P 500 outperformed with a gain of 0.8%.

Those gains put the Dow and S&P 500 on pace for their second consecutive weekly rise. The Nasdaq had a three-week winning streak ahead of them. To date, the Dow and S&P 500 are up 2.7% and 2.9%, respectively. The Nasdaq is up more than 3% during that time.

Subscribe to CNBC PRO for exclusive insights and analysis as well as live business day programs from around the world.

Related Articles