U.S. stock futures rose Friday, suggesting the S&P 500 is poised for its best week in three months, on investors’ bets that a fresh coronavirus-relief spending package will bolster the economy.
Futures tied to the S&P 500 climbed 0.5%, indicating that the broad market gauge may continue to rise after closing at a record high on Thursday. The benchmark is up over 4% this week, on track for its biggest one-week gain since the week ending Nov. 6.
Contracts linked to the technology-heavy Nasdaq-100 advanced 0.4%, and those tied to the Dow Jones Industrial Average edged 0.5% higher.
The market has rallied this week as President Biden pushed ahead with efforts to pass a $1.9 trillion relief package. Democrats are using a special procedure to move ahead on the stimulus bill: The Senate on Friday approved a budget plan that advances the reconciliation process necessary to get the aid plan approved with a simple majority in the Senate.
The fresh spending is viewed by many investors as crucial for shoring up the economy, with coronavirus cases still high across parts of the U.S.
“That would be a huge boost to the economy.” said Edward Smith, head of asset allocation research at Rathbone Investment Management. “It certainly reduces any short term risk as we wait for the vaccine rollout to get fully up to speed.”
The U.S. jobs report for January, due at 8:30 a.m. ET, will show whether the economy is picking up from a winter slowdown. Employers are expected to have added 50,000 jobs last month, according to economists. Payrolls fell in December for the first time since the pandemic triggered business shutdowns last spring. The jobless rate is forecast to hold steady at 6.7%.
Investors also remain focused on the rollout of Covid-19 vaccines, which could accelerate the speed of economic recovery.
asked U.S. regulators on Thursday to authorize the emergency use of its single-shot Covid-19 vaccine, setting the stage for a potential third vaccine to become available in the U.S. within weeks.
“The more vaccines get rolled out, the more people are going to start moving around,” said
Gregory Perdon,
co-chief investment officer at private bank
Shares of Johnson & Johnson rose…
Read More: S&P 500 on Track for Best Week Since Early November