Stock futures inch higher after a broad rally on Wall Street amid vaccine approval

A trader works on the trading floor of the New York Stock Exchange (NYSE) in Manhattan, New York City, USA, 11 August 2021.

Andrew Kelly | Reuters

Stock futures rose in overnight trading on Monday after a broad-based rally after it was revealed that US regulators have given Pfizer-BioNTech’s Covid vaccine full approval.

Futures on the Dow Jones Industrial Average rose 45 points. S&P 500 futures and Nasdaq 100 futures gained 0.1% each.

The market got off to a good start to the week as stocks sensitive to an economic recovery rose on optimism that vaccine approval would pave the way for additional mandates given the proliferation of the Delta variant.

“With the recent surge in cases and some disappointing economic data, this is another step in the right direction and helps build confidence for those who may still be grappling with the vaccine,” said Ryan Detrick, chief marketing strategist at LPL Financial.

The S&P 500 closed the session 0.8% higher on Monday after hitting a record intraday high. The tech-heavy Nasdaq Composite rose roughly 1.5% to hit a record high. The Dow Jones Industrial Average gained more than 200 points on Monday.

Investors are watching the Jackson Hole Symposium later this week, which is expected to be a market-moving event where central bankers could detail their plans to reduce monetary stimulus. The Federal Reserve has started talks to withdraw its $ 120 billion monthly bond purchase program by the end of this year.

The summit will take place virtually on Thursday and Fed Chairman Jerome Powell will give a speech on Friday.

“The Fed could announce a taper in September or November, but it will likely be a slow taper with no commitment to rate hikes.” said Edward Moya, senior market analyst at Oanda.

The second quarter reporting season is drawing to a close as more than 90% of the S&P 500 companies reported results. According to Refinitiv, the S&P 500 will increase its profit by 94.7% year over year.

Best Buy is expected to release numbers before the bell on Tuesday and Nordstrom will report after close of trading.

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