S&P 500 futures are flat to start the week as the benchmark sits inches from a record
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US stock futures were flat early Monday as the S&P 500 attempted to hit record highs this week amid optimism about the continued reopening of the economy this summer.
S&P 500 futures were little changed. The Dow Jones Industrial Average futures rose 70 points. The Nasdaq 100 futures were also flat.
The S&P 500 is just 0.2% from its intraday record high in early May. The benchmark gained 0.6% last week to push its gains above 12% in 2021. The Dow and Nasdaq also posted gains last week.
Tech stocks were weak in pre-trading hours, which weighed on sentiment somewhat. Zoom and Tesla’s shares fell about 1% each.
Visa shares were higher in pre-trading hours, up 1% after being upgraded by Piper Sandler.
“Stocks are back to record highs as the pace of economic recovery appears to be balanced,” said Craig Johnson, chief market technician at Piper Sandler. “Signs of rising inflation have been largely offset by increasing subscriptions to the Fed’s ‘temporary’ outlook.”
Friday’s job report showed that the unemployment rate fell from 6.1% to 5.8% and that 559,000 jobs were created in May. The report was deemed strong enough to maintain investor confidence in the economy but light enough to deter the Federal Reserve from changing its monetary policy.
Investors are focused on inflation data over the coming week, with the consumer price index (CPI) slated to be released Thursday for May. In April, CPI rose 4.2% yoy, the fastest increase since 2008. Should prices continue to rise, it could cause the Federal Reserve to step back from its loose policy.
At the weekend, the G-7 countries reached an agreement on a global tax reform that calls on the world’s largest corporations to pay at least 15% tax on their profits. That is less than the Biden government’s original proposal for a minimum tax rate of 21%, which did not generate much enthusiasm in other countries. Big companies like Facebook and Google have responded positively to the agreement.
Meme stocks will be back in the spotlight this week. Most of these speculative stocks, including GameStop, AMC and BlackBerry, ended the week in the red despite massive gains after a volatile week of trading.