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Benzinga
Benzinga
Business
Rishabh Mishra

Dow Jones, Nasdaq 100 Futures Rise On Government Reopening Hopes, Trump's $2,000 Dividend Proposal

New,York,,Ny,,Usa,-,August,21,,2022:,The,Nasdaq

U.S. stock futures climbed early Monday, as investors weighed two major developments out of Washington: a significant step toward ending the record-long government shutdown and a surprise stimulus proposal from President Donald Trump.

Government Reopening Hopes Push Futures Higher

Futures for the Dow Jones, S&P 500, and Nasdaq 100 all pointed to a positive open, reflecting renewed market optimism. This sentiment follows a key vote in the Senate on Sunday to advance a funding bill aimed at ending the 40-day government shutdown.

A bipartisan deal brokered by centrist Democrats and GOP leaders would temporarily fund the government through January. The breakthrough eases weeks of economic uncertainty that have impacted federal workers, disrupted food aid, and threatened widespread travel chaos ahead of Thanksgiving due to air traffic controller shortages.

Futures Change (+/-)
Dow Jones 0.23%
S&P 500 0.74%
Nasdaq 100 1.27%
Russell 2000 0.70%

See Also: As Record 40-Day Shutdown Nears End, History Shows Stocks Rally 12 Months Later With S&P 500 Averaging 12.3% Gain

$2,000 Stimulus Check Coming For Americans?

Adding to the bullish momentum, Trump announced a proposal for a “$2,000 tariff dividend” in a social media post on Sunday.

He stated, “a dividend of at least $2000 a person (not including high income people!) will be paid to everyone,” claiming it would be funded by “Trillions of Dollars” from tariffs.

Donald Trump's Truth Social Post.

However, Treasury Secretary Scott Bessent, in an appearance on ABC News, said that the tariff rebate could come in “lots of forms,” like “substantial deductions” in taxes.

The proposal drew immediate and varied reactions. Some experts, like Anthony Pompliano, viewed the announcement as fresh stimulus, predicting “Stocks and bitcoin only know to go higher.” However, others, like Otavio Costa of Crescat Capital, warned the move could be highly inflationary, stating, “You can’t cure inflation by giving people money to spend.”

As the week begins, the market is balancing the immediate relief of a functioning government against the potential long-term inflationary impact of new stimulus.

Stock Market Reels From Turbulent Week

The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, also closed mixed on Friday. The SPY was up 0.098% at $670.97, while the QQQ declined 0.32% to $609.74, according to Benzinga Pro data.

Over the last week, the S&P 500, Nasdaq 100, and Dow Jones indices declined, 2.23%, 4.04% and 1.49%, respectively.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo: JHVEPhoto / Shuttesstock

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