Stock futures flat for start of week with S&P 500 inches from record
Traders work on the floor of the New York Stock Exchange.
Stock futures are flat as the S&P 500 tries to break a record this week amid optimism that the economy is reopening this summer.
S&P 500 futures added less than 0.1%. Dow Jones Industrial Average Futures gained 23 points, or less than 0.1%. Futures contracts on Nasdaq Composite rose less than 0.1%.
The S&P 500 sits just 0.2% off its intraday high earlier in May. The benchmark index rose 0.6% last week to take its 2021 gains to over 12%. The Dow Jones and the Nasdaq also posted gains last week.
Friday’s Jobs Report shown the unemployment rate fell from 6.1% to 5.8% and that 559,000 jobs were created in May. The report was seen as strong enough to keep investor confidence in the economy, but light enough to keep the Federal Reserve from rushing to change its easy money policies.
Investors are inflation driven data in the coming week, with the May Consumer Price Index (CPI) due for release on Thursday. In April, the CPI rose 4.2% from the previous year, the fastest increase since 2008. If prices continue to rise, it could cause the Federal Reserve to pull out of its accommodative policies. .
Over the weekend, the G-7 countries reached agreement on global tax reform, calling on the world’s largest companies to pay at least 15% tax on their profits. That’s lower than the Biden administration’s initial suggestion of a minimum tax rate of 21%, which didn’t generate much enthusiasm in other countries. Large companies, including Facebook and Google, have responded favorably to the deal.
Even stocks will be in the spotlight again this week. Most of these speculative stocks, including GameStop, AMC and BlackBerry, ended the week in the red despite massive gains after a week of volatile trading.