US Equity Futures Tick Up, Dogecoin Hits Another Record

08 Feb 2021 · 3rd Party Analysis

WRITTEN BY ThorFX

In Summary

  • US equity futures higher on stimulus hopes
  • Dogecoin reaches 8th place, surpasses $10bn in valuation

Global equities reached a new top last week after investors cheered vaccine progress and improved fiscal stimulus prospects. While the positive momentum lifted global equities, the cryptocurrency market also got a large dose of attention, especially the digital coin Dogecoin, which surged to another record after Elon Musk and Snoop Dogg fired off supportive tweets.

In Washington, Treasury Secretary Janet Yellen made the optimistic forecast on Sunday that the US could return to full employment as soon as next year if Congress passes the $1.9tn relief package. “There’s absolutely no reason why we should suffer through a long slow recovery,” Ms. Yellen said in an interview, while also stating that if the rescue package is passed “we would get back to full employment next year.” The pandemic-stricken economy has led to around 9 million fewer Americans working than last February. Last week, the Biden administration and the Democrats moved forward with their agenda to pass the stimulus plan as soon as possible. In Congress, Democrats have proceeded towards approving the bill without GOP support by going through a parliamentary procedure known as reconciliation.

Investors seem hopeful that the bill could pass in the next couple of weeks. The expected stimulus helps to buoy equity futures as they indicate a higher open later today. Major indexes, Dow Jones Industrial Average, S&P500, and the Nasdaq Composite, all point to gains at the opening.

The Impeachment Process is Set to Commence

President Biden’s plan consists of two spending initiatives. The first one, currently undergoing the process of approval, aims to provide direct payments to Americans, weekly jobless benefits, and funding for the vaccination program. The second bill will be directed towards climate change and infrastructure reforms, among others. Republicans have opposed the President’s proposal for reasons related to expenditure, the raising of the minimum wage, and the extended jobless benefits.

This week the market will hear more from lawmakers in Washington as Trump’s impeachment trial begins. The US Senate is set to begin the formal impeachment process of former President Donald Trump on Tuesday, Feb 9. The Senate trial follows Mr. Trump’s impeachment last month through a bipartisan vote in the House of Representatives. The first President in US history to be impeached twice, Donald Trump will be tried for inciting an insurrection over the US Capitol on Jan 6 when a mob of supporters attacked the legislative institution, leaving five people dead. Donald Trump is likely to be acquitted given that two-thirds of the Senate needs to vote to convict him.

On the coronavirus front, US new daily cases slide below 100,000 for the first time in three months. Roughly 96,000 cases were registered on Sunday, according to data from the Covid Tracking Project, the lowest since the beginning of November last year.

 

Dogecoin Soars Again

Heading to the cryptocurrency market, strong buying momentum in Dogecoin is pushing the digital asset to record highs. Tweets from Tesla CEO Elon Musk and Snoop Dogg lifted the Shiba Inu-themed coin to 8 cents, surpassing $10bn in market cap. Elon Musk tweeted “Who let the Doge out” late on Sunday. The coin was hovering near 2.5 cents just a week earlier before a series of tweets from the tech billionaire boosted the coin to 8th place in the crypto market. Off its highs, Dogecoin is now number 10, while bitcoin is hovering around $39,000. During the weekend, the number one coin briefly topped $40,000.

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