US pre-open: Futures point to positive open following reports of more monetary and fiscal support
Wall Street futures were pointing to solid gains ahead of the bell on Tuesday amid news of more monetary and fiscal policy support from the Federal Reserve and the White House.
As of 1230 BST, Dow Jones futures were up 1.67%, while S&P 500 and Nasdaq-100 futures had the indices opening 1.15% and 1.09% firmer, respectively.
The Dow closed 157.62 points stronger on Monday despite market participants struggling with signs of a second wave of Covid-19 cases as the US economy emerges from lockdown.
Sentiment was boosted late in the previous session following an announcement from the Federal Reserve that it would look to purchase individual corporate bonds.
Driving markets before the open on Tuesday, however, was a report from Bloomberg that stated the President was in the process of putting together a $1trn infrastructure proposal.
The report indicated that the White House would be setting aside the majority of the funds for more traditional infrastructure projects, like roads and bridges, but said funds would also be reserved for 5G wireless infrastructure and rural broadband.
AvaTrade's Naeem Aslam said: "The Dow Jones futures are roaring today as investors trying their best to bag some bargains before it is too late for them.
"The news of monetary and fiscal policy support created fear of missing out among traders. There is no doubt that the current coronavirus stock market rally like the financial crisis stock market rally is fuelled and supported by the Federal Reserve."
On the macro front, monthly retails sales figures will be posted at 1330 BST, while industrial production figures will follow at 1415 BST.
Business inventories data and the NAHB housing market index will be released at 1500 BST. Fed chairman Jerome Powell will also deliver testimony at 1500 BST.