U.S. stock futures gained Thursday morning as traders shook off Wednesdayâ€™s unrest in Washington and looked ahead to the policy implications of the incoming presidential administration and Congress.
Contracts on the Dow added more than 50 points, or 0.2%, with about two hours to go until the opening bell. Overnight, Congress certified President-elect Joe Bidenâ€™s victory in the Electoral College and formally recognized him as the next president, with lawmakers reconvening hours after protesters supporting President Donald Trump swarmed inside the Capitol Building and forced the building to lock down and lawmakers to evacuate.
President-elect Joe Biden called the event an â€œinsurrectionâ€ in remarks to the nation. Trump later told the protesters to â€œgo home,â€ but reiterated baseless claims that the â€œelection was stolen from us,â€ in a video address now removed by Twitter, Facebook and YouTube. Business leaders including JPMorgan Chase CEO Jamie Dimon and Blackstone CEO Stephen Schwarzman, who has long backed Trump, condemned the violence.
Despite the turmoil, the Dow ended at a record closing high on Wednesday, and the S&P 500 gained 0.6%.
â€œWhen I look at the market reaction here â€¦ there is a recognition here that there is a certain inevitability in terms of what happens on January 20,â€ Raymond James analyst Ed Mills told Yahoo Finance on Wednesday. â€œItâ€™s not as if thereâ€™s a situation based upon any protest that keeps Donald Trump as president at this point.â€
â€œThe market is more focused on, what are the policies of the next two years with the Congress that was voted in with the final election last night? What are the policies over the next four years?â€ Mills added. â€œTheyâ€™re looking at COVID, they see vaccines being distributed. They are looking at a reopening.â€
Wednesday afternoon, the Associated Press reported Democrat Jon Ossoff was the winner of the second Georgia Senate runoff election, defeating incumbent Republican David Perdue. Democrat Raphael Warnock was called as the victor of the Senate race against incumbent Republican Kelly Loeffler earlier in the day. This gave Democrats a very narrow majority in the chamber when considering Vice President-elect Kamala Harrisâ€™s ability to cast tie-breaking votes.
Financial, materials and energy stocks jumped on Wednesday as prospects of a Democratic sweep appeared increasingly likely, given assumptions that a unified Democratic government would advance more virus-relief stimulus and increase infrastructure spending. Cannabis and clean-energy stocks including electric-vehicle makers also gained on optimism for more policies amenable to these industries under a Democratic House and Senate.
â€œOur U.S. economists have indicated that a Democratic Senate would likely lead to another large fiscal stimulus package,Â possibly including some priorities of the new administration such as infrastructure,â€ Deutsche Bank economists said in a note Wednesday. â€œThey see that as a material upside to their GDP forecast, which they currently see rising 4.3% Q4/Q4 in 2021.â€
7:22 a.m. ET Thursday: Stocks point to a higher open, Nasdaq looks to recover some losses
Here were the main moves in markets, as of 7:22 a.m. ET Thursday:
S&P 500 futures (ES=F): 3,753.5, up 13 points or 0.35%
Dow futures (YM=F): 30,780.00, up 60 points or 0.2%
Nasdaq futures (NQ=F):Â 12,707.00, up 90.25 point or 0.72%
Crude (CL=F): +$0.19 (-0.38%) to $50.82 a barrel
Gold (GC=F): +$10.10 (+0.53%) to $1,918.70 per ounce
10-year Treasury (^TNX): +0.7 bps to yield 1.049%
6:06 p.m. ET Wednesday: Stock futures open mostly higher
Here were the main moves in markets, as of 6:06 p.m. ET Wednesday:
S&P 500 futures (ES=F): 3,753.25, up 12.75 points or 0.34%
Dow futures (YM=F): 30,793.00, up 73 points or 0.24%
Nasdaq futures (NQ=F):Â 12,672.5, up 55.75 point or 0.44%