A trader on the floor of the New York Stock Exchange.
U.S. stock futures were largely equal on Wednesday night after the market’s blue-chip average set another record during normal trading hours.
Forward contracts for the Dow Jones Industrial Average added 10 points, or less than 0.1%. Those for the S&P 500 and the Nasdaq 100 fell about 0.1% higher.
The shift in futures contracts came after the Dow jumped 464 points to a record high on Wednesday. The S&P 500 rose 0.6%, while the Nasdaq Composite declined slightly as the turnaround in growth stocks resumed.
The gain came on Wednesday when the House passed the $ 1.9 billion stimulus package and sent it to President Joe Biden, and while the bond market devoured a $ 38 billion ten-year Treasury bond auction without the volatility to increase.
Rising interest rates over the past few weeks have accelerated the shift in technology and growth stocks to more cyclical sectors, such as energy. Higher rates make profits in distant years seem less attractive to investors and can cause stocks with a relatively high valuation to fall.
“The faster-than-expected acceleration of US economic growth appears to be raising inflation and interest rates over the longer term,” Gary Schlossberg of the Wells Fargo Investment Institute said in a note. “The pace of these increases has been a recent source of concern for investors, but a recovery in interest rates and inflation is a typical event early in a recovery – faster this time, in our view, due to the exceptionally strong economic growth.
This week was stronger for the growth stocks in general as a surge for the Nasdaq on Tuesday took the index off the right ground. The Invesco QQQ Trust, which tracks the Nasdaq 100, is rising slightly this week after falling the previous three weeks.
As for the data, investors will get two new readings on Thursday on the recovery of the labor market. Last week’s initial number for unemployed claims will be announced at 08:30 ET, and economists polled by Dow Jones expect 725,000 new claims. The survey for work and turnover for labor for January will take place later in the morning.