Stock Market Gains Come as US House of Reps Pass $1.9-T Stimulus

The US stock market witnessed promising gains Thursday. This development comes after the House of Representatives passed the stimulus package amounting to $1.9 trillion on Wednesday, March 10. According to the update posted online by financial markets and business news outlet CNBC, the government institution already sent the economic assistance bill to President Joseph Biden. 

The White House confirmed that the US head of state would sign the coronavirus or COVID-19 pandemic relief package bill tomorrow, Friday, March 12. Though this event has fueled indefinite happenings, including how the relief bill would ripple through the US economy, stock futures advanced during the early parts of the regular trading session.

During the early morning trade, this development in Wall Street indicated that giant technology firms’ shares would push higher during the opening bell. We are quite interested in this latest happening in the US stock market. We believe that more positive events will happen as various events in the United States propel a positive market outlook.

The stock futures associated with the S&P 500 climbed 0.7 percent. Additionally, the futures contracts for the Dow Jones Industrial Average rose 0.44 percent. They added 142 points, following the blue-chips index’s closing at a record high. The move in futures also came following the Dow jumping 464 points to a record closing high last March 10.

After muted declines for the technology sector last Wednesday, the contracts linked to the Nasdaq-100 ticked up 1.8 percent. This event suggested that technology stocks will recover, based on the news posted online by the business and markets-focused international daily newspaper The Wall Street Journal. Plus, this week, we observed that it marks a time when growth stocks overall benefit from robustness as a rise for the Nasdaq last Tuesday pulled the index out of correction territory. 

We believe that the US stock market’s gains later this week are due to different factors. We can feel some optimism regarding the economic outlook, bolstering demand for shares of firms that would rake in benefits from a relaxation of COVID-19 lockdowns. Additionally, we think that if the latest developments in the labor market indicate a decline in the unemployment rate, this significant happening will strengthen stock market trading.

The best thing we should do at this point is to be in a wait-and-see position. Being slightly optimistic is beneficial for investors amid the on-going coronavirus pandemic. Let us just see the forthcoming developments as COVID-19 vaccines get rolled out across the nation and hope more positive events will come that will breathe vibrant life to stock market trading and extend gains for more participants.

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