The S&P 500 and Nasdaq edged higher and looked through the debates in the House of Representatives to impeach President Donald Trump
Stock futures opened slightly higher as the overnight session began on Wednesday.
The S&P 500 and Nasdaq drifted higher on Wednesday and largely looked through the debates in the House of Representatives to impeach President Donald Trump.
Equities are likely to continue shrugging off the ongoing tension in Washington, according to many strategists.
The market cares about fundamentals, it cares about profits, it cares about consumer demand, Eddie Ghabour, managing partner at Key Advisors Group, told Yahoo Finance on Wednesday. So these are headline risks. But look, we had people worried about the election that proved to be nothing that hurt the market there. People were worried about the runoff election in Georgia. These are just, again, headline risks. They have nothing to do with the fundamentals of the equities, and that’s why the market is going to continue to ignore these things, in my opinion.
Instead, the prospects of more stimulus – both from Congress and from the Federal Reserve – have helped buoy equities even after stocks’ strong run-up last year and at the beginning of 2021.
Stocks have been in a holding pattern over the past couple of sessions as investors await the start of the Biden administration, which in tandem with a Democratic House and Senate, is likely to produce substantial additional fiscal stimulus to support individuals and businesses and boost consumer spending.
On Thursday, investors are set to receive new economic data including the Labor Department’s weekly report on new jobless claims, which is expected to show a tick higher in the number of initial unemployment claims last week. Federal Reserve Chair Jerome Powell will deliver virtual remarks with the Princeton University Bendheim Center for Finance, adding to the parade of Federal Reserve speakers offering their economic outlooks this week.