Stock futures were lower early Friday morning after Presidentelect Joe Biden announced details of a 1.9 trillion stimulus plan, one of the top agenda items when his administration begins next week.
Futures contracts tied to the Dow Jones Industrial Average were down 116 points. Those for the SP 500 and the Nasdaq 100 both traded in negative territory.
Bidens proposal, called the American Rescue Plan, includes increasing the additional federal unemployment payments to 400 per week and extending them through September, direct payments to many Americans of 1,400, and extending the federal moratoriums on evictions and foreclosures through September.
The plan also calls for 350 billion in aid to state and local governments, 70 billion for Covid testing and vaccination programs and raising the federal minimum wage to 15 per hour.
There is real pain overwhelming the real economy the one where people rely on paychecks, not investments, to pay for their bills and their meals and their childrens needs, Biden said during a speech in Delaware Thursday night.
Savita Subramanian, Bank of Americas head of U.S. equity strategy, said on CNBCs Fast Money that the additional government spending is part of the reason that the market leadership could shift from tech stocks to cyclical stocks in 2021.
Weve got this petri dish where everything that was good for tech and secular growth is starting to change, Subramanian said.
The announcement comes after a quiet day on Wall Street,…