What’s in Today’s Report:
- We’ve Reached an Important Tipping Point
- Weekly Market Preview: More Progress Towards a Bottom?
- Weekly Economic Cheat Sheet: Important March Data This Week
Futures are down around 3%, but off the overnight lows of –5%, as the coronavirus case count increased sharply over the weekend in the U.S. while Congress failed to make much progress on the stimulus bill.
The stimulus bill has swelled to an expected $2 trillion (which is a market positive) but it failed to clear a procedural vote in the Senate and Democrats and Republicans are still far apart on details.
But, the market does still expect passage of the bill early this week (futures would be much lower if markets doubted that the bill will pass).
There are no notable economic reports today and as such, all eyes will be on Washington. Signs of progress on the stimulus bill will result in rallies, while negative headlines will send stocks lower. As a reference, markets expect passage of the stimulus bill by the middle of this week (at the latest).