US equity futures indicate an extended market rally

US equity futures rose on Wednesday, indicating that major indices will resume rally this month.

Futures linked to the S&P 500 and the Dow Jones Industrial Average rose 0.5%. The contracts also led the heavy-tech Nasdaq 100 index, 0.5%. Both the The S&P 500 and Dow closed lower on Tuesday After achieving record highs earlier in the week.

Stocks rose this month, as the S&P 500 hit a record close this year on Monday. Investors are betting that President Biden A $ 1.9 trillion stimulus package It will help boost the economy while vaccines help curb Covid-19 deaths. Investor sentiment was also boosted by the companies ’quarterly results that largely proved to be better than expected.

“As long as earnings estimates go up, stocks go up,” said Andrew Slimon, managing director and portfolio manager at Morgan Stanley Investment Management. “The scale of the dividend gains we’ve seen is so large because the profits have been underestimated so much.”

Before the opening bell, Lyft has soared to order delivery More than 10% after recording a narrower annual loss, indicating that the company is heading towards profitability. Rival Uber Technologies is among the companies set to announce their results after the market closes. Uber’s price increased by more than 6% before marketing.