Stocks leapt in overnight trading on stimulus and earnings optimism and continued to trade higher in early trading on the same hopes. Treasury futures traded slightly higher in overnight and early trading as the bond market is closed today for Columbus Day.
Earnings season kicks off tomorrow and investors are hoping for an earnings beat even though earnings are unlikely to be higher than they were before the pandemic. Much is at stake for equity investors as stock prices are higher than their pre-pandemic levels and based on the economic data since it is unlikely earnings are above their pre-pandemic levels.
Stocks rallied ahead of third-quarter earnings season as investors panic bid stocks higher. Treasury bond prices rose despite the bond market being closed today.