Futures contracts tied to the major U.S. stock indexes rose at the start of extended trading Monday evening after finishing strong last week.
Dow futures rose 180 points, suggested an implied open of about the same magnitude, while S&P 500 contracts added 19.25 points, or 0.5%. Nasdaq 100 futures gained 67.5 points, or 0.5%.
The U.S. stock market was closed on Monday for Presidents Day.
Stock strategists say the rollout of the Covid-19 vaccine, economic reopening and expectations for more fiscal stimulus are key to the market’s buoyant February thus far.
The Dow has gained 4.9% in February, while the S&P 500 and the Nasdaq have rallied 5.9% and 7.8%, respectively. The S&P 500 has raked in ten record closes in 2021.
Still, DeBusschere warned that rising interest rates and an uncertain policy outlook could keep trading from growing too frothy in the near term and recommended investors stick to cyclical stocks that could see the most upside as the U.S. economy recovers.
Those so-called cyclical sectors, those most sensitive to an economic rebound, have led the rally in February. Energy is up more than 13% month to date, with financials and materials also among the leading sectors.
Reference: CNBC
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