After dropping on Tuesday, stock futures rose on Wednesday morning. Investors are trying to predict the market trends and weigh business reopening after the pandemic against economic overheating concerns.
S&P 500 contracts increased. Nasdaq futures had better results after the index closed at 1.7% a day before. Technology stocks are lingering during rotations to cyclical shares expected to increase in value due to stay-at-home regulations. On Tuesday, airlines, cruise lines, and hotel stocks rose and even profited during early trading.
Analysts believe stock futures are set to rebound. S&P 500 futures rose to 24.75 points for Wednesday. Dow futures increased to 20.00 points. Nasdaq increased by 96.25. The price of crude oil was $60.82 per barrel, and Gold was $1.722.70 per ounce.
During the pre-market session, Rocket Companies (RKT) shares dropped. Rocket Companies is an online mortgage provider. Its stock leaped 71%, a record high on Tuesday. It led to a volatility standstill because investors on Reddit targeted the heavily shorted stock.
The business reopening that is made possible with the vaccination program will benefit service-focused companies. Investors will be looking forward to the coming months, focusing on these companies. According to the U.S. president, Joe Biden, the country would vaccinate all adults by the end of May. Johnson & Johnson’s (JNJ) single-dose COVID-19 vaccine was approved last week. The drugmaker Merck (MRK) will manufacture the vaccine.
This week, the U.S. Senate plans to push for another stimulus package of $1.9 trillion. Meanwhile, congressional lawmakers are trying to authorize another bill before the end of March to support the unemployed citizens with the last package.
Experts believe the U.S. may face significant inflationary pressure with the economic recovery during the business reopening. Last week’s surge in Treasury yields, where the standard ten-year yield hit a one-year high of 1.61%, is not something investors will forget. A rise in interest rates might halter recovery.