Futures inch higher
U.S. stock futures rose on Tuesday morning after President Donald Trump said he is considering capital gains and middle-income tax cuts to help prop up the virus-hit economy.
“We’re looking at also considering a capital gains tax cut, which will create a lot more jobs,” the president said during a press briefing at the White House on Monday. “Looking very seriously at a capital gains tax cut and also at an income tax cut for middle-income families.”
“I think it will be very exciting. A capital gains tax is going to be a lot of people put to work, and it will be a cut in the capital gains tax and also a cut in the middle-income tax,” he added.
Trump made the announcement after he signed executive orders over the weekend that extends extra jobless benefits, at $400 a week.
As of 5:20 a.m. ET, futures tied to the blue-chip Dow indicated a gain of 290 points, or 1.05% to 27,969. The S&P 500 futures added 24.63 points, or 0.73% to 3,377.38 while the tech-heavy Nasdaq 100 futures were up 78.25 points, or 0.71% to 11,150.25.
California judge orders Uber and Lyft to reclassify drivers as employees
In other news, a California judge on Monday passed a ruling ordering Uber (NYSE: UBER) and Lyft (NASDAQ: LYFT) to stop treating their drivers as independent contractors and classify drivers them as employees.
Californian officials had sued the firms for failing to enforce a state labor law that has been widely viewed as a major threat to the “gig economy” as the impacts of the coronavirus pandemic continue to weigh on many people.
The order will go into effect in 10 days, giving the companies time to appeal. It could have major implications for Uber and Lyft, as well as other tech companies that depend on contractors.
Treating drivers as employees comes with a host of obligations on behalf of the companies, such as affording them the same labor rights as any other employee in the state, including paid sick leave.
California is an important market for both companies, where Uber has 200,000 drivers in the state and Lyft has over 325,000 drivers.
As of this writing, Uber shares were down 1.46% to $31.80 apiece in Tuesday’s pre-market trading session. Lyft stock was down less than a percent to $30.78 a share.
Putin says Russia had created a coronavirus vaccine
Elsewhere, Russian President Vladimir Putin claims scientists in the country have created a coronavirus vaccine, which has been registered for use and one of his daughters is among those inoculated.
“As far as I know, this morning, for the first time in the world, a vaccine against the coronavirus infection has been registered here,” Putin told members of his cabinet on Tuesday according to the multiple media reports.
“It works effectively enough, forms a stable immunity and I repeat, it has gone through all necessary tests,” he added.
Trials of the vaccine will continue even as his regime begins to distribute it to the public.
The coronavirus pandemic has claimed nearly 750,000 lives, infected over 20 million people, and devastated the global economy.
