Futures contracts tied to the major U.S. stock indexes rose early Tuesday morning as a Bloomberg report said President Donald Trump’s administration is preparing a $1 trillion infrastructure proposal.
Dow Jones Industrial Average futures rose 308 points, suggesting an open gain of more than 350 points when regular trading resumes on Tuesday. S&P 500 and Nasdaq-100 futures also implied a positive Tuesday start for the two indexes.
Citing people familiar with the plan, Bloomberg reported the Trump administration is drawing up a $1 trillion infrastructure proposal. The report said a preliminary the version being prepared would set aside the majority of the money for traditional infrastructures such as roads and bridges, though funds would also be reserved for 5G wireless infrastructure and rural broadband.
Earlier in the session, Dow futures had jumped more than 500 points. Some of those gains were pared following reports that North Korea blew up an inter-Korean the liaison office in a border town.
The moves early Tuesday morning followed a striking rebound in U.S. equity markets during the regular session.
The central bank said it would buy individual corporate bonds and
signaled a broader approach to corporate bond-buying that had remained a matter
of speculation until Monday afternoon. The Fed indicated earlier in the spring
that it would buy bonds on the primary market, but Monday’s announcement
expanded its operations into the secondary market.
All told, the Fed’s mid-June announcement represented yet another step by the Fed to backstop the financial markets and reassure investors that it will continue to support credit markets during the coronavirus.
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