U.S. Index Futures Fall as Mnuchin Seeks Unused Funds From Fed
(Bloomberg) -- U.S. stock index futures fell after Treasury Secretary Steven Mnuchin and the Federal Reserve publicly disagreed Thursday over whether to extend the central bank’s emergency pandemic lending programs.December contracts on the S&P 500 dropped 0.5% at 2:49 p.m. in Tokyo. Futures declined 0.7% on the Dow Jones Industrial Average and were little changed on the Nasdaq 100 Index. Mnuchin sought a 90-day extension for four of the central bank’s emergency lending programs, but requested other programs expire on schedule on Dec. 31 and the Fed return $455 billion to the Treasury so Congress can spend the money elsewhere. But the central bank pushed back and said the programs served a vital role.“I think traders are concerned that the Fed backstop is being compromised by a Treasury secretary who’ll be out of a job in a few months,” said Max Gokhman, Pacific Life Fund Advisors’ head of asset allocation. “It’s very hard to make decisive day-to-day calls in a market like this where there are so many sources of volatility.”On Thursday, tech shares led U.S. equity indexes higher, with the stay-at-home trade gaining appeal as investors weighed the impact of tougher virus restrictions on economic growth along with the outlook for widespread vaccine distribution within months. The S&P 500 Index ended the day up 0.4%.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Published:11/20/2020 12:11:00 AM