<p><img src="https://static3.businessinsider.com/image/601d11c319cbd800188afe19-2400/GettyImages-596957126.jpg" border="0" alt="GettyImages 596957126" data-mce-source="Ken Cedeno/Getty Images" data-mce-caption="Oil prices have jumped, with investors expecting a strong rebound in demand as economies recover"></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p>US stocks were on track to rise to new all-time highs on Friday at the end of a stellar week in which the <a href="https://markets.businessinsider.com/index/s&p_500">S&P 500</a> has already risen around 4% and is heading for its strongest weekly gain in three months.</p><p>Signs that the US and other economies are recovering from the latest round of coronavirus restrictions have also boosted oil prices to one-year highs, as the demand outlook brightens.</p><p>After the index climbed more than 1% on Thursday, <a href="https://markets.businessinsider.com/futures/s&p-500-futures">S&P 500 futures</a> inched 0.28% higher on Friday. <a href="https://markets.businessinsider.com/futures/dow-futures">Dow Jones futures</a> rose 0.29% while <a href="https://markets.businessinsider.com/futures/nasdaq-100-futures">Nasdaq futures</a> climbed 0.22%.</p><p>China's <a href="https://markets.businessinsider.com/index/csi-300">CSI 300</a> rose 0.17% overnight, finishing the week in the green, as the strong economic recovery outweighed worries over rising short-term credit costs. Japan's <a href="https://markets.businessinsider.com/index/nikkei_225">Nikkei 225</a> jumped 1.54% on upbeat earnings and stimulus hopes.</p><p><strong data-stringify-type="bold"><em data-stringify-type="italic">Read More:</em></strong><em data-stringify-type="italic"> </em><em data-stringify-type="italic"><a href="https://www.businessinsider.com/crypto-bitcoin-investing-strategy-voyager-dogecoin-cryptocurrency-interest-stephen-ehrlich-2021-2" target="_blank" rel="noopener noreferrer" data-stringify-link="https://www.businessinsider.com/crypto-bitcoin-investing-strategy-voyager-dogecoin-cryptocurrency-interest-stephen-ehrlich-2021-2" data-sk="tooltip_parent">Investors are flocking to trade Dogecoin and other hot digital tokens on Voyager, a platform with no Robinhood-style restrictions. Its CEO says Bitcoin will hit $100,000 this yearand shares 3 other cryptocurrencies to watch.</a></em></p><p>The Europe-wide <a href="https://markets.businessinsider.com/index/stoxx_europe_600">Stoxx 600</a> index rose 0.42% in early trading, while the UK's <a href="https://markets.businessinsider.com/index/ftse_100">FTSE 100</a> climbed 0.11%.</p><p>Investors have been pulled in different directions in recent weeks. Hopes that vaccines and stimulus will power a strong recovery in 2021 have clashed with short-term economic pain and a <a href="https://www.businessinsider.com/gamestop-stock-funds-squeeze-sachs-biggest-short-goldman-2021-2">day-trading frenzy that shook markets</a> at the end of January.</p><p>But better-than-expected economic data from the US has sparked new optimism that the recovery will be a powerful one.</p><p>Figures released yesterday showed that new <a href="https://www.businessinsider.com/us-weekly-jobless-claims-779000-coronavirus-economy-recovery-labor-market-2021-2">US unemployment claims fell for the third week</a> in a row last week - to 779,000 - and factory orders rose more than expected in December.</p><p>The Bank of England on Thursday cut its short-term growth forecasts thanks to January's lockdown. But it said the country's speedy coronavirus vaccine rollout "should <a href="https://www.businessinsider.com/bank-of-england-cuts-2021-growth-forecast-for-uk-economy-2021-2">help the UK economy recover rapidly</a> later this year."</p><p>Adding to the general mood of optimism, Democrats in Congress are powering ahead with plans to pass a $1.9 trillion stimulus package without Republican approval.</p><p>Investors' attention on Friday will be on the official US employment report, due at 8.30am ET. Economists at Daiwa expect a modest 50,000 increase in payrolls, following a 140,000 decline in December. Yet they said in a note that recent data suggests the figure could be better than expected.</p><p>Oil prices have soared this week as the economic outlook has brightened, with investors betting demand will be higher in the future. <a href="https://markets.businessinsider.com/commodities/oil-price">Brent crude</a> was up 1.12% on Friday morning to $59.66 a barrel, its highest level since February 2020. Brent has gained more than 7% so far this week, its largest weekly increase in a month. <a href="https://markets.businessinsider.com/commodities/oil-price'type=wti">WTI crude</a> was 1.42% higher at $57.03 a barrel.</p><p><strong data-stringify-type="bold"><em data-stringify-type="italic">Read More:</em></strong><em data-stringify-type="italic"> </em><em data-stringify-type="italic"><a href="https://www.businessinsider.com/day-trading-investing-strategy-stocks-top-wealth-manager-peter-mallouk-2021-2" target="_blank" rel="noopener noreferrer" data-stringify-link="https://www.businessinsider.com/day-trading-investing-strategy-stocks-top-wealth-manager-peter-mallouk-2021-2" data-sk="tooltip_parent">A top-ranked manager at a firm that handles $50 billion in wealth told us 4 ways investors can smartly play day-trading favorites like GameStop without risking it all</a></em></p><p>Jeffrey Halley, senior market analyst at currency firm Oanda, said: "With inflation sentiment rising in the US, partially due to higher government borrowing, adding a tailwind to the economic recovery, the conditions still remain supportive for oil markets."</p><p>The <a href="https://markets.businessinsider.com/index/us-dollar-index">dollar index</a> slipped back from its highest level since December. It was last down 0.16% to 91.39.</p><p>A strong pound, after the Bank of England suggested negative interest rates were not likely any time soon, added to greenback weakness. The <a href="https://markets.businessinsider.com/currencies/gbp-usd">pound</a> was up 0.21% to $1.37 on Friday after jumping on Thursday.</p><p>US bond yields were little changed. The yield on the <a href="https://markets.businessinsider.com/rates/u-s--rates-10-yearshttps://markets.businessinsider.com/rates/u-s--rates-10-years">10-year Treasury note</a> was roughly flat at 1.139% but continued to trade at around its highest level since March 2020, reflecting stronger growth and inflation expectations. Yields move inversely to bond prices.</p><p><a href="https://markets.businessinsider.com/news/stocks/stock-markets-today-futures-new-record-highs-strong-us-economy-2021-2-1030047740#comments">Join the conversation about this story »</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/worlds-most-expensive-liquid-thoroughbred-horse-semen-2020-3">Why thoroughbred horse semen is the world's most expensive liquid</a></p>
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