U.S. stock futures crossed slightly higher Monday night ahead of the first presidential debate Tuesday.
Futures for the Dow Jones Industrial Average rose about 80 points or 0.3%. Contracts for the S&P 500 and Nasdaq Composite also increased by approx. 0.3%.
The quiet move in futures follows a solid start to the week for equities during Monday’s session, with the Dow rising 410 points or 1.5%. The S&P 500 and Nasdaq rose 1.6% and 1.9%, respectively.
David Waddell, CEO of the wealth strategy firm Waddell & Associates, said he saw the recent weakness of the market as a necessary “comeuppance” for major technology stocks and that the stocks were put to short-term volatility while the indices threaded water.
“I think we’re in a sideways period. We just have to make it look like we’re on a trampoline,” Waddell said. The strategist also said his clients still had a large amount of their assets in cash, suggesting potential market support.
Political news is potentially a major driver of market news this week, with the first debate between President Donald Trump and Democratic candidate Joe Biden taking place Tuesday night. Some Wall Street analysts believe that the first debate in this cycle may be more consistent for markets than most debates, with a clear victory from a candidate potentially creating significant market movements.
House Speaker Nancy Pelosi said Monday night that Democrats unveiled a new $ 2.2 trillion package that is smaller than the more than $ 3 trillion proposed earlier in the crisis, but still far beyond what Republican leaders have offered. . According to a summary, the new bill would include improved unemployment benefits and assistance to airlines and state and local authorities.
The rise in stocks on Monday came after mixed news about the coronavirus response over the weekend. On the positive side of the market, Florida lifted capacity restrictions for restaurants over the weekend, and Pelosi said she believed there was still another bill.
However, cases in the United States continued to rise again, with Dr. Anthony Fauci on Monday said the United States is not “a good place” as colder weather approaches.
Before the debate begins, investors will take a closer look at the state of the semiconductor industry as Micron reports its fiscal fourth-quarter results after Tuesday. The stock rose 1.2% on Monday despite receiving a “negative catalyst” from Citi.
Do not miss CNBC and institutional investors Delivers Alpha Conference on Sept. 30 with Treasury Secretary Steven Mnuchin, Senator Elizabeth Warren, Alibaba’s Joseph Tsai, Vista Equity Partners’ Robert Smith, JP Morgan’s Mary Callahan Erdoes, Inclusive Capital’s Jeff Ubben and more.