US Stock Futures Point Up Ahead of Biden Inauguration
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- Millions set to watch inauguration ceremony online
- Treasury Secretary nominee highlights short-term and long-term goals
US equity futures tick up on Wednesday amid the earnings season and increased hopes for the approval of the additional relief package of $1.9tn. The dollar extends its retreat today as Joe Biden is set to enter the White House while millions of people will be watching online since there will be no audience in attendance in the National Mall.
Yesterday’s trading saw benchmark US indexes close higher led by the Nasdaq Composite, up 1.53%, or 198.68 points to a close of 13,197. The S&P500 climbed 0.81%, or 30.66 points and closed at 3,798.91, while the Dow Jones Industrial Average inched higher by 0.38%, or 116.26 to a close of 30,930.52. On Inauguration Day, market participants remain optimistic towards stocks in the premarket hours. Gold is also scaling up, reaching above $1,850 today as gold traders digest yesterday’s hearing of Treasury Secretary nominee Janet Yellen.
Joe Biden becomes the President of the United States today. At noon Joe Biden will be inaugurated as the 46th US President. The former Vice President will take office during one of the most challenging periods in American history. A global pandemic, an economic crisis, and a politically divided nation.
New Political Agenda Already Set in Motion
The president-elect has already started to roll out his political agenda. His incoming chief of staff, Ronald Klain, released a memo last week in which he lays out a few executive orders that the new President can sign from the first day in office. Some of the priorities included are reversals of decisions that have been made during the last four years. These include rejoining the Paris Climate Accord and rolling back some of the immigration bans. President-elect Biden is hoping to hit the ground running by joining forces with Congress on the passing of $1.9tn in relief measures. Mr. Biden and his team will be pushing for the proposal to get both through the House and the Senate and to be signed into law as quickly as possible.
Donald Trump will not be at today’s inauguration, but he did release a video farewell speech yesterday and will have a farewell event today. An hour before Joe Biden appears for the inauguration, Donald Trump is expected to have landed in Florida. Nearly all of the living former presidents will be at the inauguration except for Jimmy Carter who is well into his 90s.
Former Federal Chairwoman Janet Yellen appeared virtually before US Senators yesterday for the confirmation hearing. Ms. Yellen is Joe Biden’s pick for US Treasury Secretary. During her hearing, she highlighted her short-term goal of passing President-elect Biden’s $1.9tn fiscal stimulus package. Her longer-term goals include rebalancing the US economy, making sure that climate change is
adequately tackled and factored into economic policymaking, ensuring that racial injustices can be narrowed. On the topic of the national debt, Janet Yellen left open the possibility that the Treasury could issue longer-dated debt beyond the 30-year maximum to lock in the historically low borrowing costs for the US government. As a former Fed Chair, she was more on the dovish side in her comments and positions.
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