The Dow Jones Futures rallied more than 300 points on the day, indicating that Wall Street stock markets will rebound tonight. Responds to the drop in US government bond yields.
The Dow futures are also boosted by the unanimous resolution of the US Centers for Disease Control and Prevention (CDC) approving the COVID-19 vaccine. According to Johnson & Johnson (J&J), the vaccine was approved by the US Food and Drug Administration (FDA) on Saturday.
As of 6:21 p.m. Thai time, the Dow Jones futures rose 299 points, or 0.97%, to 31,211 points, after surging more than 300 points earlier.
The Dow jumped 3.15% in February, its third rise in the past four months.
However, the Dow Joneses collapsed last week. Pressured by a spike in US 10-year Treasury yields above 1.6 percent, hitting their highest level since Feb. 2020. It was boosted by strong US economic numbers, expectations for a broader economic recovery from the COVID-19 vaccine, as well as a surge in inflation expectations from the 1.9 stimulus package. Trillion dollars
The US 10-year bond is the benchmark bond used to determine the global bond’s price. This includes the mortgage loan interest rates. And US car loan interest rates Which if the government bond yields rise Will reduce the money in consumer spending As the cost of paying interest on the loan increases. And companies will face higher costs from debt repayments. This will make these companies reduce their investment. And reduce the dividend payment to investors
The US House of Representatives voted in favor of the stimulus over the past weekend. And it is now in the Senate hearing. Before sending it to President Joe Biden signed the endorsement into law.
U.S. House of Representatives Speaker Nancy Pelosi expects the completion of the stimulus approval process before March 15, the date the unemployment measures affected by COVID-19 will expire.
Congress previously approved the fast track approval of President Joe Biden’s $ 1.9 trillion stimulus package, using a budgeting approach known as budget reconciliation. This will pave the way for the House of Representatives and the Senate to certify the budget with more than half a vote. Instead of using two thirds of the votes for passing the general law This allows such stimulus to pass Congress without the need for Republican support.
Democrats now occupy a majority in the US House of Representatives. In the Senate Democrats and Republicans have equal votes of 50-50, so the Senate’s approval of the stimulus measures. Requires one decisive vote from Vice President Kamala Harris. Which will vote as President of the Senate by office, also provided that Democratic senators will not be able to split a single vote.
Investors had their eyes on the Federal Reserve’s monetary policy meeting on March 16-17, after Fed Chairman Jerome Powell said in a half-year statement to Congress last week: The Fed will continue its monetary easing policy. While signaling to freeze interest rates near 0% for the next 3 years
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