U.S. stock futures edged higher Friday, suggesting that the major benchmarks are on track for a second week of gains as they climb to record levels.
Futures tied to the S&P 500 ticked 0.3% higher, a day after the broad-market index notched its first all-time closing high of 2021. Nasdaq-100 futures and those linked to the Dow Jones Industrial Average also climbed about 0.3%.
Stocks have rallied this week despite the political unrest in Washington. Investors have largely focused on prospects for additional government spending by President-elect Joe Biden’s administration after Democrats won both Senate seats in Georgia. The fresh stimulus measures are expected to provide crucial support to American households and businesses as the coronavirus pandemic restricts work and social activity in the winter months.
“We believe that this is a very sweet spot, from a political point of view, for the market,” said Stephane Monier, chief investment officer at Lombard Odier. “The new U.S. administration will differentiate itself from the previous one by being consistent, as opposed to unpredictable, with a focus on international cooperation, instead of being isolationist.”
The Democrats’ narrow majority in the Senate may also limit Mr. Biden’s ability to push measures such as higher corporate taxes and increased regulation, Mr. Monier added. “This is good for risky assets, and especially the stock market,” he said.