Wall Street headed higher after boost from coronavirus vaccine promise, fiscal stimulus package progress

Wall Street headed higher after boost from coronavirus vaccine promise, fiscal stimulus package progress

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US stocks are expected to rise on Wednesday, rallying again amid fresh optimism for an economic rebound as the roll-out of coronavirus (COVID-19) vaccines steps-up and there is progress toward a deal on President Biden’s new stimulus package. Futures for the blue-chip Dow Jones Industrial Average and the broader S&P 500 index were both 0.7% higher, while the tech-laden Nasdaq-100 index futures added 0.8%, all recovering after a weaker session on Tuesday. Wall Street has been volatile in recent days but on Wednesday, sentiment was buoyed by signals that the Democrats will seek to bridge differences over jobless benefits and other issues as they aim to complete the $1.9 trillion relief package in coming days. And there was also a boost after President Biden said the US would have enough COVID-19 vaccines for all American adults by the end of May, two months earlier than had previously been expected. The bond market has also calmed in recent days after a surge in yields rattled investors last week, leading to sharp declines in stocks. Top central bank officials have said the rise in yields reflected optimism about economic prospects. Federal Reserve governor Lael Brainard said Tuesday that the recent tumult in the bond market is on her radar screen. However, she signalled that the Fed will not be dialling back on support for the economy until it is on a stronger footing, reiterating comments made by other officials. Investors will eye data from the Institute for Supply Management on the US services sector, due at 10.00am ET. The figures are expected to show sector activity expanded for a ninth consecutive month in February. And the Fed’s beige book report, due at 2.00pm ET, will also offer the latest anecdotal evidence on the state of US businesses as they gear up for a reopening of the economy. On commodity markets, Brent crude oil rose 1.5% to $63.63 a barrel, while gold prices fell 0.4%. Five things to watch on Wednesday: Rocket, parent of Quicken Loans rose again pre-market on Wednesday with its shares having doubled this week as it gained popularity on internet message boards as a short-squeeze candidate SpaceX is building a new factory in Texas for its satellite-based broadband service Starlink, according to a job posting from the company, as billionaire entrepreneur Elon Musk continues to invest in the southern state Samsung Electronics is considering two sites in Arizona and another one in New York in addition to Austin, Texas, for a new $17 billion chip plant, according to documents filed with Texas state officials a Reuters report said Exxon Mobil Corp has said it plans to cut its workforce in Singapore, home to its largest oil refining and petrochemical complex, by about 7% amid the “unprecedented market conditions” resulting from the COVID-19 pandemic Nordstrom Inc warned after the close on Tuesday that it would have to go through its off-price channel to clear some of its holiday merchandise inventory in the first quarter that piled up due to shipping delays

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