Traders work on the floor of the New York Stock Exchange.
Stock futures flat as the S&P 500 seeks record highs this week. Amid optimism about the economy reopening this summer.
S&P 500 futures were up less than 0.1%. Dow Jones industrial average futures were up 15 points or less by 0.1%. Nasdaq Composite Futures were up less than 0.1%.
The S&P 500 is 0.2% from its intraday high at the beginning of May. Benchmarks were up 0.6% last week to give 2021 gains more than 12%. The Dow and Nasdaq also posted gains last week.
Friday’s jobs report showed the unemployment rate fell to 5.8% from 6.1%, and 559,000 jobs added in May. The report was seen as strong enough to maintain investor confidence in the economy. But light enough to prevent the Federal Reserve from rushing to change its easy monetary policy.
Investors are paying attention to inflation data next week. The Consumer Price Index (CPI) for May will be released on Thursday. In April, the CPI rose 4.2% from the previous year. This is the fastest increase since 2008 if prices continue to rise. This could cause the US Federal Reserve to back away from simple policies.
Over the weekend, the G-7 countries reached an agreement on tax reforms around the world. It demanded that the world’s largest companies pay at least 15% tax on their earnings. That’s well below Biden’s management’s initial recommendation of a 21% minimum tax rate, which hasn’t received much enthusiasm in other countries. Big companies including Facebook and Google have responded well to the deal.
Meme stocks are back in the spotlight this week. Most of these speculative stocks, including GameStop, AMC and BlackBerry, ended the week in red. Despite a huge rally after a volatile trading week.