U.S. stock futures rose in overnight trading on Sunday as major averages looked to accelerate gains after posting their biggest weekly gain since November.
Future contracts linked to the Dow gained 115 points or 0.35%. S&P 500 futures were 0.4% higher, while Nasdaq 100 futures rose 0.5%.
The S&P 500 closed on Friday at a record high, posted its fifth straight positive session for the first time since August. Since August, The Dow is also on its longest regular winning streak, while on Friday, the Nasdaq Composite posted its fourth positive session in five. Besides, the tech-heavy index closed at a record high.
“In the early stages of an economic recovery that is gaining momentum, we are still very much in a bull market.” Michael Wilson, chief U.S. equity strategist at Morgan Stanley, said in a note to customers Sunday. “As the vaccines are distributed and normal activities resume, we continue to recommend stocks with the most upside to an improving economic backdrop,” he said.
All three major averages ended the week higher, posting their best week since November, as worries of broader market contagion from a short-squeeze on a handful of stocks receded. Meanwhile, the Russell 2000 index is on its longest daily gain since May, rising 7.7% last week for its best weekly performance since June.
The Senate and House each passed a budget resolution on Friday, starting the reconciliation process that would allow President Joe Biden’s $1.9 trillion rescue package to get through the Democratic-held Senate with a simple majority.
The package includes $1,400 stimulus checks, supplemental jobless benefits, and Covid-19 vaccine and testing funds.
Treasury Secretary Janet Yellen said that the passed stimulus plan could make the U.S. return to full employment by 2022.