Dow futures rise, Trump eyes $1 trillion infrastructure proposal
The US Fed intervenes, Dow, Nasdaq and S&P 500 futures rise, and reports of a US$1 trillion infrastructure proposal emerge.
Dow futures up following weak Monday open
US markets were on shaky ground heading into Monday’s session. Indeed, as we reported before the market open yesterday:
‘Dow Jones Industrial Average (DJIA) futures were trading down 935 points or 3.66%, suggesting the market would open significantly lower on Monday, 15 June.’
Unsurprisingly, the DJIA dropped sharply in the opening hours of trade, before rebounding as the session wore on, eventually finishing out the day up 0.62% or 157 points, at the 25,763 point level.
On a more granular level, a number of key financial stocks were bid higher on Monday, with Goldman Sachs rising 2.25%, American Express up 2.23% and JPMorgan Chase & Co up 1.38%. By comparison, the worst performing Dow constituents during the day were Merck, Chevron, and Pfizer.
Elsewhere, the S&P 500 and the Nasdaq Composite rose 0.83% and 1.43%, respectively.
US Fed intervenes, infrastructure proposal reports emerge
Looking at the catalysts behind the above market moves, on Monday, the US Federal Reserve announced that it would commence buying individual US corporate bonds, under the Secondary Market Corporate Credit Facility (SMCCF) program.
According to the Fed, the aim of these purchases is to 'support market liquidity and the availability of credit for large employers.'
If that wasn’t enough to drive bullish sentiment amongst investors, reports have begun to surface that US President Donald Trump is in the process of preparing a US$1 trillion infrastructure proposal.
According to individuals familiar with the stimulus proposal and as reported by Bloomberg:
‘A preliminary version of the proposal being prepared by the Department of Transportation would reserve most of the money for traditional infrastructure work, like roads and bridges, but would also set aside funds for 5G wireless infrastructure and rural broadband.’
In response to all this, as of 12:51am (EDT), Dow Jones Industrial Average futures traded some 464.5 points or 1.8% higher, suggesting the key US benchmark would open higher on Tuesday, 16 June.
S&P 500 and Nasdaq Composite futures were also up at the time of writing.
Finally, it’s set to be a jam-packed day in terms of economic data releases on Tuesday, with retail sales data (May), industrial production data (May), capacity utilization data (May), home builders' index data (June), and business inventories data (April), all set to be released during the day.
How to trade US stocks after hours with IG
Most AU traders can only trade the US stock market's from 23.30 to 06.00 AEST, but with our extended hours you can trade for much longer.
- CFDs on All Session US shares
18.00 to 10.00 Monday to Thursday, and 18.00 Friday to 07.00 Saturday AEST
- Share trading on All Session US shares
21.00 to 07:30 Monday to Thursday, and 21.00 on Friday to 07.00 Saturday AEST
You'll find our extended trading hours markets labelled ‘All Session’, to distinguish them from the shares which can only be traded in normal US market hours.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets